Airtel Africa Plc, a telecommunications service provider and subsidiary of the telecom giant Bharti Airtel, led by Indian billionaire Sunil Bharti Mittal, has announced a strategic move aimed at enhancing shareholder value through a $100-million share buyback program.
In a bid to optimize its capital structure and leverage prevailing market conditions, Airtel Africa revealed its ambitious $100-million share repurchase initiative. This development signifies a significant milestone for the company, which operates in 14 Sub-Saharan countries and serves 140 million customers.
Airtel Africa announces $100-million share repurchase, Citi to facilitate initial $50–million phase
According to a recent statement by Airtel Africa, the share buyback program will commence immediately, spanning a duration of up to 12 months, with the goal of returning up to $100 million to shareholders. The buyback program is slated to unfold in two phases, with the first tranche set to commence today and expected to conclude on or before Aug. 31, 2024.
The initial phase of the buyback program entails a maximum of $50 million. Airtel Africa has entered into an agreement with Citigroup Global Markets Limited (Citi) to conduct the first tranche of the buyback, involving on-market purchases of its ordinary shares, followed by the company’s acquisition of its ordinary shares from Citi.
Airtel Africa’s strategic share buyback: A bold move towards sustainable growth
Airtel Africa, operating in 14 Sub-Saharan countries with 140 million customers, is a key player in the African telecommunications scene. Led by Indian billionaire Sunil Bharti Mittal, Bharti Airtel holds the third spot globally in mobile service providers based on subscriber numbers. In Africa, Airtel competes notably with South African leaders Vodacom and MTN Group.
The share buyback initiative not only reflects Airtel Africa’s confidence in its growth prospects but also underscores its commitment to delivering enduring value for stakeholders in emerging markets.
Sunil Bharti Mittal, the visionary entrepreneur behind Bharti Airtel, presently ranks as the world’s 111th richest individual, boasting a net worth of $17.5 billion. The bulk of his wealth stems from his 28 percent stake in Bharti Airtel, valued at $19.4 billion. According to the Bloomberg Billionaires Index, Mittal’s liabilities stand at $2.6 billion.
