Airtel Africa, a leading telecommunications and mobile money services provider, has announced the launch of its second share buyback program, committing to return $100 million to its shareholders.
The company made the announcement on Monday via a statement on the Nigeria Exchange Group (NGX) website, building on the successful completion of an earlier $100 million buyback conducted in March 2023.
The program will be executed in two phases, with the first tranche targeting a maximum of $50 million. This phase has begun already and is expected to conclude on or before April 24, 2025.
To execute the program, Airtel Africa has partnered with Barclays Capital Securities Limited, which will oversee on-market purchases as a riskless principal operating independently of the company.
Airtel Africa’s commitment to strategic capital optimization is further supported by its consistent dividend growth, evidenced by a 9% increase in its interim dividend for the first half of the 2025 fiscal year.
The company clarified that the sole purpose of the buyback is to reduce its capital, with all purchased shares slated for cancellation. The buyback will adhere to the parameters set by the company’s shareholders and align with the Financial Conduct Authority’s UK Listing Rules and Market Abuse Regulation (EU) provisions.
The decision to pursue a share buyback is strategic, as it allows Airtel Africa to return excess capital to shareholders while enhancing earnings per share (EPS).
By reducing the number of outstanding shares, the company aims to increase the value of the remaining shares, benefiting existing shareholders.
According to Airtel Africa, the buyback reflects the Board’s confidence in the company’s growth potential, robust balance sheet, and consistent cash flow generation at the holding company level, providing assurance about its financial stability.
For shareholders, it represents an opportunity to capitalize on Airtel Africa’s efforts to optimize its capital structure.
Moreover, share buybacks can drive up the stock price, benefiting shareholders who retain their investments.
