Airtel Africa plc has announced the commencement of its share buyback program, marked by the acquisition of 491,861 shares from Citigroup Global Markets Limited aimed at bolstering shareholder value and optimizing capital structure. This purchase, disclosed in an official statement to the Nigerian Exchange Limited (NGX), underscores the company’s commitment to enhancing market confidence and driving long-term growth.
The announcement, signed by Alastair Jones from Airtel Africa Investor Relations, details the initiation of the share repurchase program authorized by shareholders. Since its commencement on March 1st, shares were acquired at an average price of GBp 97.14 per share on the London Stock Exchange. The company intends to utilize this program to return capital to shareholders, with a focus on reducing its capital base. Shares repurchased under this initiative will be canceled, further streamlining the company’s capital structure.
This move comes on the heels of Airtel Africa’s release of its nine-month financial results up to December 31, signaling a proactive approach to capital management in alignment with its growth strategy. The share buyback program, with a targeted return of up to $100 million to shareholders over a maximum period of 12 months, is poised to strengthen the company’s financial position and enhance shareholder value.
The implementation of the buyback program will adhere to predetermined criteria outlined in the agreement with Citigroup, ensuring transparency and accountability in the share repurchase process. Moreover, the program is consistent with the shareholder-approved repurchase authorization granted during the annual general meeting on July 4, 2023, allowing for the repurchase of up to 375,815,150 ordinary shares.
As Airtel Africa continues to pursue its growth trajectory in the telecommunications sector across Africa, the initiation of the share buyback program underscores its commitment to driving shareholder value and optimizing its capital structure to support sustainable long-term growth. With this proactive approach to capital management, Airtel Africa positions itself for continued success in the dynamic African telecommunications market.
Credit: Nairametrics (Text Excluding Headline)
