Airtel Africa initiates second tranche of $100m share buy-back programme
By Esther Agbo
Airtel Africa, a major telecommunications and mobile money services provider with operations across 14 African countries, has announced the commencement of the second tranche of its $100 million share buy-back programme. This follows the successful completion of the first tranche earlier this year.
The telecommunications giant published this information on the NGX disclosure page on August 19, 2024.
The second tranche, valued at up to $50 million, begins today and is expected to conclude on or before 19 December 2024. Airtel Africa has partnered with Citigroup Global Markets Limited (“Citi”) to execute the buy-back. Citi will manage the on-market purchases of Airtel Africa’s ordinary shares, with the company subsequently acquiring these shares from Citi. Notably, Citi will act as a riskless principal, making independent decisions throughout the process.
The primary objective of this share buy-back programme is to reduce the company’s capital by cancelling all shares acquired under the programme. The execution will adhere to strict guidelines, including those outlined in the company’s agreement with Citi, the Financial Conduct Authority’s UK Listing Rules, and the Market Abuse Regulation as it applies to UK domestic law.
Airtel Africa’s shareholders, during the annual general meeting held on 3 July 2024, granted the company the 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 by virtue of the European Union (Withdrawal) Act 2018, as amended). The buy-back will proceed in accordance with this mandate and may continue during any closed periods within the engagement period.
In its second quarter performance, Airtel Africa reported a pre-tax profit that increased by 133.6per cent YoY to $74 million in the second quarter of 2024. The revenue of the company fell by 16.1per cent from $1.37 billion reported in Q2 of 2023 to $1.15 billion in the second quarter of 2024.
Operating profits fell by 27.4 percent, from $462 million in 2023 to $335 million in the second quarter of 2024. The company however has managed to record a 103 per cent rise in earnings per share from common stocks.
Recall that the company’s CEO, Sunil Talder, in a press statement released after Q2 financial statements were published, said, “Most importantly, our emphasis is on significantly improving customer experience by simplifying customer journeys and providing best-in-class network experience to our customers, whilst remaining focused on driving efficiencies across the business.”
Airtel Africa is a leading provider of telecommunications and mobile money services, with operations in 14 African countries. The company offers a comprehensive suite of telecommunications solutions, including mobile voice, data, and mobile money services, both domestically and internationally.
