On August 7, 2024, Airtel Africa announced the acquisition of 406,000 ordinary shares from Citi Group Global Markets as part of a strategic share buyback initiative. The shares were purchased at a price of $0.50 each on the London Stock Exchange, a move sanctioned by the company’s stakeholders.
The highest price paid for the shares was 110.20p, while the lowest price was 107.70p, as reported by the volume-weighted average price. This buyback was initially planned on March 1, 2024, with a total of 34,896,112 ordinary shares to be acquired over a 12-month period at a volume-weighted average price of 110.35p.
The rationale behind the buyback, as outlined in the company’s June 25, 2024, release, was driven by strong cash generation, current leverage, and cash reserves held by the parent company, which influenced the board’s decision to proceed with the program.
In a conference call transcript released on July 25, Airtel Africa’s CEO, Sunil Talder, addressed the revenue decline, attributing it primarily to inflationary pressures, including rising diesel prices in markets such as Nigeria. He also noted, “The mixing effect of Nigeria, given the lower contribution from our largest operating company,” as a factor.
Despite these challenges, Airtel Africa remains optimistic, actively participating in the Nigerian stock markets!!
