Airtel Africa, in a notice filled with the Nigeria Exchange Limited on Monday, has announced the commencement of the second tranche of its share buyback program worth $50 million.
The second tranche of the share buyback is anticipated to end before December 19, 2024.
The Group Company Secretary, Simon O’Hara through the notice filled explained that it had partnered with Citigroup Global Markets Limited (“Citi”) to execute the buy-back, with Citi acting as a riskless principal and making independent decisions regarding the purchase of shares.
He explained that the sole purpose of the buy-back programme was to reduce the capital of the Company. “As such, all shares purchased under the buy-back programme will be cancelled.”
The statement further read, “Any purchases of ordinary shares under the buy-back programme by Citi will be carried out in accordance with certain pre-set parameters set out in the agreement with Citi and Company purchases will be in accordance with (and subject to the limits prescribed by) the Company’s general authority to repurchase ordinary shares on the London Stock Exchange granted by its shareholders from time to time (at the annual general meeting on 3 July 2024, shareholders gave the Company authority to purchase a maximum of 374,141,187 ordinary shares), “Chapter 9.6 of the Financial Conduct Authority’s UK Listing Rules and the provisions of the Market Abuse Regulation (EU) No 596/2014 (as it forms part of domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended).
“Purchases may continue during any closed periods of the Company during the engagement period.”
The company’s CEO, Raghunath Mandava, emphasised the importance of the programme, stating, “The share buy-back programme is an integral part of our strategy to return value to our shareholders and to optimise our capital structure. By cancelling the repurchased shares, we aim to enhance shareholder value and reflect our commitment to maintaining a strong balance sheet.
“We remain committed to upholding the highest standards of regulatory compliance and transparency. This buy-back programme reflects our confidence in the long-term prospects of Airtel Africa and our dedication to delivering value to our shareholders.”
It stated that under the programme, Airtel Africa will repurchase its ordinary shares, which will be cancelled to reduce the company’s capital.