Airtel Africa has begun the second phase of its $50 million share buyback program, as disclosed on the Nigerian Exchange (NGX) page on August 19, 2024.
This buyback, initially announced on February 1 and March 1, 2024, involves purchasing 34,896,112 ordinary shares from Citigroup Global Markets at an average price of 110.35p over 12 months.
The second tranche, expected to conclude by December 19, 2024, will see Airtel Africa repurchasing its shares from Citigroup Global Market Limited (Citi), which will act as a riskless principal, making decisions independently of the company.
Airtel Africa’s CEO, Sunil Talder, highlighted the company’s commitment to enhancing customer experience and driving business efficiencies in a statement following the release of the second quarter financial results.
The buyback aims to reduce share capital, debt obligations, and operating expenses associated with excess share capital.
READ ALSO: Airtel Africa buys back shares, cites strong financial position despite revenue decline
The program, approved by shareholders during the company’s annual general meeting on July 3, 2024, authorizes the purchase of up to 374,141,187 ordinary shares.
Despite reporting a 133.6% year-on-year increase in pre-tax profits to $74 million in Q2 2024, Airtel Africa faced a 16.1% decline in revenue, dropping from $1.37 billion in Q2 2023 to $1.15 billion in Q2 2024, and a 27.4% decrease in operating profits from $462 million to $335 million.
The second tranche will be conducted according to pre-set conditions agreed upon with Citi, within the limits authorized by the company’s general authority to repurchase shares on the London Stock Exchange.
All transactions will comply with shareholder approvals and resolutions made at the July 3, 2024, annual general meeting.
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