Table of Contents
Key Points
- Airtel Africa launches $100 million share buyback, boosting shareholder returns and signaling financial resilience.
- Phase one of the buyback, worth $50 million, runs from Dec. 2024 to April 2025, with Barclays handling purchases.
- Buyback follows shareholder approval to repurchase up to 374.1 million shares, reinforcing confidence in growth and cash flow.
Airtel Africa Plc, the pan-African telecommunications provider and a subsidiary of Bharti Airtel, the Indian telecom giant led by billionaire Sunil Bharti Mittal, has unveiled a $100 million share buyback program aimed at boosting shareholder returns and reinforcing financial resilience.
The buyback program, disclosed Monday via a regulatory filing on the Nigeria Exchange Group (NGX), demonstrates the company’s confidence in its growth trajectory and robust cash flow. This initiative follows a similar $100 million buyback completed in March 2024, further underscoring Airtel Africa’s commitment to capital reduction and rewarding shareholders.
Shareholder approval and mandate scope
The program will be executed in two phases, with the first tranche, valued at up to $50 million, running from December 23, 2024, to April 24, 2025.
Barclays Capital Securities Limited will act as an independent decision-maker for on-market purchases, operating as a riskless principal to acquire shares and resell them to Airtel Africa for cancellation. This structure ensures compliance with the UK Financial Conduct Authority Listing Rules and the EU’s Market Abuse Regulation.
At the July 2024 annual general meeting, Airtel Africa received shareholder approval to repurchase up to 374.14 million ordinary shares. Following the completion of its prior buyback, the company retains the authority to acquire up to 328.84 million shares under the current mandate. The buyback may proceed during closed trading periods, emphasizing Airtel Africa’s adherence to regulatory transparency and robust governance practices.
Operational and financial resilience
Airtel Africa’s parent company, Bharti Airtel, ranks as the world’s third-largest mobile service provider by subscriber count, reflecting its expansive global reach. Mittal, who holds the 74th position on the Bloomberg Billionaires Index with a net worth of $25.3 billion, derives much of his wealth from his 28% stake in Bharti Airtel.
In its H1 2024 results, Airtel Africa reported revenues of $2.37 billion, reflecting a 9.65 percent decline in reported currency terms but a 19.9 percent growth in constant currency. This performance was fueled by a 6.1 percent expansion in its customer base and an 11.1% rise in average revenue per user (ARPU).
Additionally, Airtel Africa secured a $1.2 billion lease extension with American Tower Corp., covering 7,100 sites across Nigeria, Uganda, Kenya, and Niger. This agreement provides long-term cost stability, further strengthening the company’s operational framework. By initiating this buyback program, Airtel Africa reinforces its strategy to enhance shareholder value while maintaining its leadership position in the region’s telecommunications sector.
