Airtel Africa (Airtel Africa) disclosed on Thursday that it is commencing a second phase of its share buyback programme, aiming to repurchase and cancel up to 12 million ordinary shares no later than 22 December 2026. The company will rely on Citigroup to acquire the shares on the open market before returning them for cancellation, and it confirmed that the transactions will not take place on the Nigerian Exchange (NGX).
Key details of the new buyback phase
- The programme, first introduced in May, permits the company to buy back a maximum of 1 % of its total share capital. After the initial phase concluded in September, roughly 0.33 % – about 12 million shares – remained available for repurchase.
- The current tranche will run until 22 December 2026 unless the full allocation is exhausted earlier.
- In the first phase, Airtel Africa spent approximately US$108.7 million to acquire and cancel 24.5 million shares, as reported in its half‑year results.
- The company stated that the share purchases will be executed off‑exchange, meaning they will not be listed on the NGX.
How the buyback will be carried out
Citigroup has been appointed as the intermediary to buy the shares on the market. Once purchased, the shares will be transferred back to Airtel Africa, where they will be permanently cancelled, thereby reducing the total number of issued shares outstanding.
Potential impact on shareholders
A share buyback reduces the pool of shares available to investors, which can increase each remaining shareholder’s ownership percentage. For illustration, if a company has 100 shares and an investor holds 10, that investor owns 10 % of the firm. Should the company cancel 10 shares, only 90 shares remain, raising the investor’s stake to about 11.1 %.
In Airtel Africa’s case, the planned repurchase represents only about 0.33 % of its total share capital, so the direct effect on individual holdings will be modest. However, a lower share count can boost earnings per share (EPS) because profit is spread over fewer shares. An improved EPS may be viewed positively by the market, although it does not guarantee a rise in the share price.
Considerations for investors
The funds allocated to the buyback are locked into the repurchase and cannot be redirected toward other corporate initiatives such as network expansion, new service launches, or debt reduction. Consequently, investors should assess the buyback in the context of Airtel Africa’s overall financial health and growth prospects before making investment decisions.
Overall, the second‑phase buyback underscores Airtel Africa’s strategy to return cash to shareholders while managing its capital structure, even as the company continues to explore other growth avenues across its African operations.