Airtel Africa has launched the second phase of its $100 million share buyback initiative, with a new tranche valued up to $50 million. The telecom giant disclosed this development in a filing with the Nigeria Exchange Limited, revealing that this phase will extend through December 19, 2024. This move aligns with resolutions from the company's annual general meeting held in July 2024, where shareholders authorized the repurchase of up to 374,141,187 ordinary shares. This tranche follows previous announcements on February 1 and March 1, 2024, and builds on the completion of the first phase of the buyback program. Airtel Africa aims to use the buyback to reduce its share capital, along with its debt obligations and operating cash costs associated with excess capital. Citigroup Global Markets Limited has been appointed to manage the on-market purchases for this tranche, operating as a riskless principal. Citi will independently handle the transactions, which will be subsequently sold to Airtel Africa. All buyback activities will be conducted under shareholder authorization and adhere to pre-set parameters established in the agreement with Citi. The purchases will also comply with the company's general authority to repurchase shares on the London Stock Exchange. Airtel Africa CEO Raghunath Mandava emphasized that the buyback is a key element of the company's strategy to enhance shareholder value and optimize its capital structure. "By canceling the repurchased shares, we aim to boost shareholder value and uphold a robust balance sheet," Mandava said. Jane Smith, Citi’s Head of Equity Capital Markets, expressed enthusiasm about supporting Airtel Africa’s capital management strategy. “Our role as riskless principal will ensure efficient execution of the buyback while meeting all regulatory requirements. We are committed to assisting Airtel Africa in achieving its strategic goals through this program,” Smith noted.
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