Our Correspondent | Africa Guardian
Airtel Africa Plc is launching a major $100 million share buyback program, set to deliver value to its investors and boost shareholder returns.
Under the buyback scheme, the repurchased shares will be cancelled, effectively reducing the company’s share capital and increasing the value of the remaining shares. This move is aimed at enhancing shareholder value and providing a direct benefit to investors.
The buyback will be managed through Barclays Capital Securities Limited, with Airtel Africa repurchasing the shares from Barclays at a later stage.
A Confident Move Backed by Strong Financials
In a corporate notice filed with the Nigeria Exchange Limited, Airtel Africa confirmed that the decision to initiate the buyback reflects the company’s strong financial position. The board expressed confidence in Airtel Africa’s robust cash flow, healthy balance sheet, and significant growth potential, which supported the decision.
The notice stated:
“Airtel Africa announces the commencement of a second share buyback programme that will return up to $100 million to shareholders. This reflects the Board’s confidence in the Company’s continued growth potential, the strength of its balance sheet, and the consistent cash generation at the holding company level.”
How the Buyback Benefits Shareholders
The buyback is in line with Airtel Africa’s capital allocation strategy and its conservative capital structure. By reducing the number of shares in circulation, the company increases the value of the remaining shares, ultimately benefiting shareholders.
Airtel Africa, one of the highest capitalized companies on the Nigerian Stock Exchange, operates across 14 markets in East, Central, and West Africa, positioning it as a dominant player in the telecommunications and mobile money sectors.
Buyback to Take Place in Two Phases
The buyback will be executed in two phases, each amounting to $50 million. The first phase begins this week and will continue until 24 April 2025.
Barclays Capital Securities Limited will handle the buyback process by purchasing shares on the open market, after which Airtel Africa will repurchase the shares from Barclays, making it a “riskless principal” arrangement. This means that Barclays’ decisions will be independent of Airtel Africa.
Airtel Nigeria’s Expanding Footprint
In related news, Airtel Nigeria, a subsidiary of Airtel Africa, has recently acquired three new licenses from the Nigerian Communications Commission (NCC). These licenses—National Long Distance, Internet Service Provider, and Sales & Installation Major—will allow Airtel Nigeria to expand its fiber network and enhance its data services, further strengthening its position in Nigeria’s competitive telecom market.
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