Table of Contents
Key Points
- Airtel Africa unveils $50 million buyback phase, part of $100-million plan to boost shareholder value and optimize capital structure.
- CEO Raghunath Mandava emphasizes the buyback will strengthen Airtel Africa’s balance sheet and align with broader financial strategies.
- Citigroup Global Markets manages the buyback, ensuring compliance and efficiency, with confidence in the process.
Airtel Africa Plc, the pan-African telecommunications provider and a subsidiary of Bharti Airtel, the telecom giant led by Indian billionaire Sunil Bharti Mittal, has unveiled the second phase of its $100-million share buyback initiative, valued at $50 million.
The telecom provider announced the $50-million buyback plan in a Nigerian Exchange (NGX) filing on Monday, as it looks to optimize its capital structure and boost shareholder returns. This phase, running until Dec. 19, follows an earlier $50-million tranche managed by Citigroup Global, emphasizing its focus on enhancing shareholder value.
Strengthening balance sheets with buyback
Raghunath Mandava, CEO of Airtel Africa, emphasized the significance of the buyback program in the company’s broader financial strategy. He highlighted that repurchasing and canceling shares would not only enhance shareholder value but also strengthen the company’s balance sheet. This move, according to Mandava, is a testament to Airtel Africa’s commitment to regulatory compliance and transparency.
Citigroup Global Markets Limited is managing the buyback program, with the financial institution’s Head of Equity Capital Markets Jane Smith, expressing confidence in the process. She noted that Citigroup’s role as a riskless principal ensures that the buyback is executed efficiently and in full compliance with regulatory standards.
Airtel Africa buyback signals confidence
As a top player in the African telecommunications sector, Airtel Africa operates across 14 Sub-Saharan countries, serving over 140 million customers. The company, a subsidiary of Bharti Airtel, competes alongside regional giants such as Vodacom and MTN Group.
Bharti Airtel, founded by Indian billionaire Sunil Bharti Mittal, ranks as the third-largest mobile service provider globally by subscriber count. Mittal, who currently holds the 86th spot on the Bloomberg Billionaires Index, has a net worth of $23.2 billion, largely derived from his 28-percent stake in Bharti Airtel, valued at $19.4 billion.
Airtel Africa’s $100-million share buyback, announced earlier this year, marks a key step in the company’s financial recovery. After reporting a $31-million profit, a turnaround from a $151-million loss the year before, the buyback highlights renewed confidence. Bharti Overseas Pvt Limited, linked to the Mittal family, also boosted its voting rights in Airtel Africa to 15.1 percent in late 2023, reinforcing its influence and long-term commitment to the African market.
