Airtel Africa launches second share buyback programme, targets $100m

Airtel Africa has announced the commencement of a second share buyback programme that will return up to $100 million to shareholders.

The programme is expected to be phased over two tranches, with the first tranche commencing on Monday and anticipated to end on or before 24 April 2025, according to a statement by the provider of telecommunications and mobile money services.

The first tranche will amount to a maximum of $50 million, it said.

Airtel Africa has entered into an agreement with Barclays Capital Securities Limited to conduct the first tranche of the buyback and carry out on-market purchases of its ordinary shares with the company subsequently purchasing its ordinary shares from Barclays.

“Under this agreement, Barclays will act as riskless principal and will make decisions independently of the company,” it said. “The sole purpose of the buy-back programme is to reduce the capital of the company. As such, all shares purchased under the buy-back programme will be cancelled.”

On July 3, 2024, shareholders at the annual general meeting gave the company authority to purchase a maximum of 374,141,187 ordinary shares.

The following the completion of the previous buyback, the remaining authority amounts to a maximum of 328,842,995 ordinary shares.

“The share buyback reflects the board’s confidence in the company’s continued growth potential, the strength of its balance sheet and the consistent cash accretion at the holding company level,” Airtel Africa said. “Furthermore, the buyback remains in line with the company’s existing capital allocation policy. The programme will be executed in accordance with applicable securities laws and regulation.”