Airtel Africa Trades at 52-Week High, Begins $60m Share Buyback
Dual-listed telecom company Airtel Africa Plc traded at a 52-week high on the Nigerian Exchange (NGX), with 3.578 billion outstanding shares valued at N12.489 billion.
Airtel signed a deal with Barclays Securities Limited to repurchase $60 million in shares on the London Stock Exchange (LSE) in its initial trade to implement the capital reduction plan.
According to trading data from the Nigerian bourse, the telecommunications company’s share price peaked at N3323.40, a level it has sustained over the last seven trading sessions.
Price movement has been constrained by low-volume activity, with investor transactions as low as 1 unit per trading session following a share buyback of its non-controlling interest in the Nigerian market.
In a regulatory filing, Airtel Africa has told the market regulator its intention to buy back its own share through a deal with Barclays Capital Securities Limited.
The telco said its share buyback programme will involve the repurchase of up to 1% of the Company’s issued share capital as at the date of this announcement and forms part of the broader approach to returning cash to shareholders.
It sees the programme as a key component of its capital allocation policy.
Airtel said the Board’s decision reflects the continued strength of the Group’s balance sheet and its ability to preserve financial flexibility while supporting ongoing investment to capitalise on the compelling growth outlook across the Group’s footprint.
Airtel has authorised Barclays Capital Securities Limited to conduct the programme and carry out on-market purchases of its ordinary shares, with the Company subsequently purchasing its ordinary shares from Barclays.
The total share buyback target is $60 million, and the regulatory filing revealed that Barclays will act as riskless principal under the agreement.
The agreement comprises two elements which will operate in parallel: a non-discretionary element pursuant to which Barclays will purchase up to $60m of ordinary shares and will make trading decisions independently of the Company.
The sole purpose of the buyback programme is to reduce the Company’s capital. As such, all shares purchased under the buyback programme will be cancelled. NGX Dips by N366bn as Investors Paint Broad Street in Red
