Airtel Africa to Return $100m to Shareholders via Share Buyback

Airtel Africa, a provider of telecommunications and mobile money services, has announced the commencement of a second share buyback programme that will return up to $100m to shareholders.

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.

Furthermore, the buyback remains in line with the Company’s existing capital allocation policy.

According to the company, the programme will be executed in accordance with applicable securities laws and regulations.

The share buy-back programme is expected to be phased over two tranches, with the first tranche commencing today and anticipated to end on or before 24 April 2025.

The first tranche will amount to a maximum of $50m.

The Company has entered into an agreement with Barclays Capital Securities Limited (Barclays) to conduct the first tranche of the buy-back 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.

The sole purpose of the buy-back programme is to reduce the capital of the Company.

It noted that as such, all shares purchased under the buy-back programme will be cancelled.

In a statement signed by Simon O’Hara, group company secretary, the company noted that the share repurchase process will adhere to pre-set parameters agreed upon with Barclays Capital Securities Limited (Barclays), the executing partner for the first tranche of the buyback programme.

This partnership ensures that purchases are conducted transparently and in compliance with all regulatory requirements.

The buyback will be executed under the authority granted by shareholders during the Annual General Meeting held on July 3, 2024, which permits the repurchase of up to 374,141,187 ordinary shares.

Following the completion of a prior buyback programme, the remaining authority allows for the acquisition of up to 328,842,995 shares.

Additionally, Airtel Africa confirmed its commitment to adhering to the Financial Conduct Authority’s UK Listing Rules 9.6 and the provisions of the Market Abuse Regulation (EU) No. 596/2014, as incorporated into UK domestic law.

The company also clarified that share purchases may occur during closed periods, consistent with these regulations and the agreed parameters.