…Citigroup Global Markets Limited (Citi) to conduct the first tranche of the buy-back
…The Company intends to enter into arrangements to commence a second tranche of the share buy-back programme in an amount of up to $50 million in due course
FRI, MAR 01 2024-theGBJournal|Airtel Africa said on Friday it will buy back $100 million worth of company shares over a period of up to 12 months.
The share buy-back which commenced today, follows the release of its its nine-month results ended 31 December 2023 in which it reported a 99% dip in profits after currency devaluation in some of its biggest markets including Nigeria.
Airtel, a leading provider of telecommunications and mobile money services, says the share buy-back programme is expected to be phased over two tranches, with the first tranche commencing today and anticipated to end on or before 31 August 2024.
The first tranche will amount to a maximum of $50 million.
The Company intends to enter into arrangements to commence a second tranche of the share buy-back programme in an amount of up to $50 million in due course
The Company said it has entered into an agreement with Citigroup Global Markets Limited (Citi) to conduct the first tranche of the buy-back and carry out on-market purchases of its ordinary shares with the Company subsequently purchasing its ordinary shares from Citi.
Under this agreement, Citi will act as riskless principal and will make decisions independently of the Company.
The sole purpose of the buy-back programme, the company says, is to reduce the capital of the Company. As such, all shares purchased under the buy-back programme will be cancelled.
”This buy-back programme reflects the significant progress made in recent years to reduce leverage and strengthen the Company’s balance sheet,” Airtel management said.
”In light of the cash accretion at the holding company level, the current leverage and the consistent strong operating cash generation, the Company is well positioned to undertake this share buy-back to enhance shareholder returns which is consistent with its existing capital allocation policy,” it added.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
