Airtel Africa Announces $100 Million Share Buyback

Airtel Africa, has announced a significant step in enhancing its financial efficiency with the launch of a $100 million share buyback programme.

A share buyback occurs when a company repurchases its own shares from the stock market. This reduces the number of shares available, which can increase the value of the remaining shares for investors.

The buyback, announced on December 23, 2024, is structured in two tranches. The first tranche, which begins immediately, will see Airtel Africa repurchase up to $50 million worth of shares. This phase is expected to conclude by April 24, 2025. Barclays Capital Securities Limited has been appointed to manage the process, with Barclays independently acquiring the shares on the open market before selling them to Airtel Africa.

The agreement ensures that Barclays acts as a “riskless principal,” meaning it will carry out the buyback without influence from the company. This adds transparency and ensures compliance with securities laws. As for the second tranche, details regarding the remaining $50 million buyback will be disclosed once the first tranche is completed.”

The primary goal of this programme is to reduce the company’s capital by canceling all repurchased shares. By doing so, Airtel Africa aims to enhance share value. With fewer shares in circulation, the value of each remaining share is expected to increase, benefiting existing shareholders. On top of that, the programme seeks to boost investor confidence and optimize capital allocation.

Airtel Africa operates in 14 countries across the continent, providing essential telecom and mobile money services to millions. The company has been steadily strengthening its financial position, with strong revenue growth and cash flow reported in recent quarters. This buyback is a testament to its ability to manage finances prudently while continuing to invest in business expansion.

Airtel Africa’s Board emphasized that the buyback demonstrates their commitment to delivering value to shareholders while supporting the company’s long-term growth and financial stability. Shareholders have approved the repurchase of up to 374,141,187 ordinary shares, with 328,842,995 shares remaining available for buyback from a previous programme.