Airtel Africa buys more shares, reportedly they have purchased 8.6 million ordinary shares from Citigroup Global Markets Limited as part of an ongoing share buyback programme that began on March 1, 2024.
The buy-back programme entails repurchasing $100 million in Airtel Africa shares over 12 months.
The telco said the purpose of the buy-back programme is to reduce share capital and minimise its debt obligations and operating costs by extension.
Consequently, all shares purchased through the buyback programme will be cancelled. So, with fewer Airtel shares in circulation, the remaining shareholders assume a higher stake in the company and a higher return on future dividends. The programme will give Airtel more control.
The telecom company has stated that acquiring ordinary shares through the buy-back programme will be consistent with the criteria outlined in its contract with Citigroup.
It will also follow the general permission granted by its shareholders for share repurchases. During the company’s general meeting on July 4, 2023, shareholders agreed to repurchase up to 375,815,150 ordinary shares.
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The buy-back agreement is slated to happen in two parts. The first tranche, worth $50 million, will run for 7 months, from March to August 2024.
In the latest transaction, Airtel has repurchased 487,985 ordinary shares from Citigroup at a weighted average price of £103.94 ($131.70) per share.
What the CEO Have to Say
Segun Ogunsanya, CEO of Airtel Africa, has explained that the board only decided to launch a share buy-back programme because Airtel’s businesses had generated significant revenue.
Per Ogunsanya, “The board believes that repurchasing its shares is an attractive use of its capital in light of the Group’s strong long-term growth outlook.”
Like most other companies with operations in Nigeria, Airtel Africa has faced macroeconomic challenges that have reduced profits. The telco’s financial statement revealed a revenue decline in December 2023, due to the naira’s devaluation, which affected its exchange rate.
Consequently, the telco recently outsourced several tower operations from its Nigerian subsidiary to IHS Towers to reduce its rising operating costs.
Frequently Asked Questions
Where is the headquarters of Airtel Africa?
Airtel Africa is headquartered in London, Greater London, the UK.
Who owns Airtel Africa?
The ownership structure of Airtel Africa Plc (GB:AAF) stock is a mix of institutional, retail and individual investors. Approximately 7.87% of the company’s stock is owned by Institutional Investors, 20.87% is owned by Insiders and 71.26% is owned by Public Companies and Individual Investors.
Is Airtel successful in Africa?
It is the 3rd largest operator with 33,376,556 subscribers, behind Globacom (37,268,483) and MTN Nigeria (61,280,293) as of Nov 2016. Airtel Congo is the market leader with a 55% market share. They launched services in Rwanda on 30 March 2012. Airtel has over 55% market share of mobile market in Seychelles.
Is Airtel Africa a good investment?
The average share price target for Airtel Africa Plc is 125.61p. This is based on 5 Wall Streets Analysts 12-month price targets, issued in the past 3 months. Airtel Africa Plc’s analyst rating consensus is a Strong Buy.
Who is the CEO of Airtel Money Africa?
Airtel Africa on Tuesday announced the appointment of Sunil Taldar as Managing Director and Chief Executive Officer and the retirement of long-time CEO Olusegun Ogunsanya. Ogunsanya will retire on July 1, 2024, after a 12-year-long stint in the company.
Is Airtel owned by a Nigerian?
Airtel’s parent company, Bharti Airtel Limited is a leading global telecommunications company with operations in 16 countries across Asia and Africa. Headquartered in New Delhi, India. The company ranks amongst the top 3 mobile service providers globally in terms of subscribers.
Who is the CEO of Airtel in Nigeria?
Carl Cruz, the chief executive officer (CEO) of Airtel Nigeria.
