The telecommunications company and mobile money service provider filed a corporate notice on the Nigeria Exchange Limited, announcing the deal.
In the notice, Airtel Africa said that the board is confident in the strength of its balance sheet, cash flow, and growth potential, hence the decision to proceed with the share buyback.
The notice read:
The buyback aligns with Airtel Africa’s capital allocation policy and its conservative capital structure. Executing the share buyback means that the bought shares will be cancelled to reduce the company’s capital.
In this way, the value of the remaining shares increases, thus returning the value of investors.
Airtel Africa, one of the highest capitalised companies on the Nigerian stock exchange, operates in fourteen markets across East, Central, and West Africa.
Airtel Africa has also said that the buyback will be done in two tranches of $50 million each. The first tranche starts this week and will run until April 24, 2025.
To manage this process, Airtel Africa has partnered with Barclays Capital Securities Limited. Barclays will buy the ordinary shares on the open market, and Airtel will then repurchase them from Barclays.
This positions Barclays as a riskless principal in the arrangement, making its decisions independent of Airtel Africa.
TimesNow.com.ng reported recently that Airtel Nigeria, one subsidiary of Airtel Africa, obtained three new licenses from the Nigerian Communications Commission (NCC).
The new licenses awarded included National Long Distance, Internet Service Provider, and Sales & Installation Major licences.
The licenses empowered the company to expand its fibre network and provide improved data service to customers in Nigeria.
Proofreading by Nkem Ikeke, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
