Airtel Africa is making waves with the launch of the second phase of its $100 million share buy-back initiative, aimed at enhancing shareholder value and optimizing its capital structure. This new tranche, valued at up to $50 million, is scheduled to run until December 19, 2024, as announced in a recent filing with the Nigeria Exchange Limited.
Airtel Africa, a major player in telecommunications and mobile money services across 14 African countries, is kicking off the second leg of its share buy-back program. This follows earlier announcements made on February 1 and March 1, 2024, and marks the completion of the first tranche. The company plans to purchase and cancel its ordinary shares, effectively reducing its capital and boosting shareholder value.
Raghunath Mandava, Airtel Africa’s CEO, highlighted the strategic importance of this move: “The share buy-back program is a key component of our strategy to return value to our shareholders and strengthen our capital structure. By cancelling repurchased shares, we aim to enhance shareholder value and demonstrate our commitment to maintaining a robust balance sheet.”The initiative underscores Airtel Africa’s confidence in its long-term prospects and its dedication to regulatory compliance and transparency.
To manage this phase, Airtel Africa has enlisted Citigroup Global Markets Limited to execute the on-market purchases. Acting as a riskless principal, Citi will independently decide on the purchases, after which Airtel Africa will acquire the shares from Citi. Jane Smith, Citi’s Head of Equity Capital Markets, expressed enthusiasm about the collaboration: “We are excited to support Airtel Africa in this significant capital management initiative. Our role ensures efficient execution while meeting all regulatory standards.
This buy-back program aligns with the authority granted by Airtel Africa’s shareholders at the annual general meeting on July 3, allowing the repurchase of up to 374,141,187 ordinary shares. As Airtel Africa moves forward with this initiative, it remains committed to delivering value to its shareholders and achieving its strategic goals.
Researched by Tunde Ojediran.
Student intern for XGALogic Inc.
For 1stAfrika 2024.
