The second tranche of Airtel Africa’s $50 million share repurchase program has begun, the company stated in a notification filed with the Nigeria Exchange Limited on Monday.
It is expected that the second tranche of the share buyback will conclude before December 19, 2024.
In the statement submitted, which was accessed by BrandSpur telecom and IT news, Group Company Secretary, Simon O’Hara stated that the buy-back was being carried out in collaboration with Citigroup Global Markets Limited (“Citi”), with Citi serving as a riskless principal and making its own decisions about the purchase of shares.
He clarified that the buyback program’s exclusive goal was to lower the company’s capital.
“As such, all shares purchased under the buy-back programme will be cancelled,” O’Hara said.
Furthering, the statement reads: “Any purchases of ordinary shares under the buy-back programme by Citi will be carried out following certain pre-set parameters set out in the agreement with Citi, and Company purchases will be by (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 under the European Union (Withdrawal) Act 2018, as amended).
“Purchases may continue during any closed periods of the Company during the engagement period,” the statement added.
Raghunath Mandava, the CEO of the company, underlined the significance of the initiative by saying: “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,” Mandava added.
It, however, said that to lower the company’s capital, Airtel Africa will repurchase its common shares, which will be cancelled.
