AIRTEL AFRICA REPURCHASES 40,921 SHARES FROM CITIGROUP

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Airtel Africa, a major telecom company, announced the purchase of 40,921 ordinary shares from Citigroup Global Limited for $0.50 each. This transaction took place on April 19th, 2024, on the London Stock Exchange, as part of their previously announced share buyback program (details revealed in March 2024).

In a share buyback program, a company repurchases its own shares from the market. This reduces the number of outstanding shares and can be a way for the company to reinvest in itself. Airtel can either buy shares through a tender offer or on the open market.

According to a company document, the average price paid per share was £107.53. The document also noted that the purchased shares will be cancelled.

The buyback program, which started in March 2024, aims to repurchase $100 million worth of Airtel Africa shares within a year. The program is divided into two phases, with the first phase focusing on $50 million from March to August 2024. This program is intended to reduce share capital and potentially lower debt and operating costs.

Since the program’s launch, Airtel Africa has repurchased a total of 11,995,292 ordinary shares at an average price of £98.86 per share.

It’s worth noting that Airtel Africa faced financial challenges in 2023. The company reported significant losses, including a $151 million loss in the first quarter and a 99% decline in annual profits (from $523 million to $2 million). Currency devaluation in key African markets like Nigeria, Malawi, Zambia, and Kenya were the main reasons for these losses.

To improve its financial health, Airtel Africa announced the share buyback program in February 2024. So far, they have acquired a total of 8.6 million shares from Citigroup Global Limited.

Source: Techeconomy