Airtel to return $100m to shareholders as second share buyback starts

Airtel Africa Plc has announced the commencement of a second share buyback programme that will return up to $100 million to its shareholders.

The sole purpose of the buy-back programme is to reduce the capital of the Company. As such, all shares purchased under the buy-back programme will be cancelled.

The share buy-back programme is expected to be phased over two tranches, with the first tranche commencing Monday December 23 and anticipated to end on or before April 24, 2025. The first tranche will amount to a maximum of $50 million.

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.

Airtel Africa said 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.

The buyback remains in line with the Company’s existing capital allocation policy. The programme will be executed in accordance with applicable securities laws and regulation.

Any purchases of ordinary shares under the buy-back programme will be carried out in accordance with certain pre-set parameters set out in the agreement with Barclays and in accordance with (and subject to the limits prescribed by) the Company’s general authority to repurchase ordinary shares granted by its shareholders from time to time.

At the annual general meeting on July 3, 2024 shareholders gave the Company authority to purchase a maximum of 374,141,187 ordinary shares and following the completion of the previous buyback, the remaining authority amounts to a maximum of 328,842,995 ordinary shares).