Telecommunication and Mobile Money Services giant, Airtel Africa, on Monday announced the commencement of a second share buyback programme expected to return up to $100m to its shareholders.

At the close of the first tranche, the share buy-back recorded 45,298,192 units or 12.11% of the total 374,141,187 ordinary shares maximum approved for purchase at the annual general meeting on July 3, 2024, shareholders. However, at the completion of the previous buyback, the remaining 328,842,995 ordinary shares,is now being offered under the second tranche in line with the sole purpose of the buy-back programme, which according to Simon O’Hara, Group Company Secretary, in a notice to the Nigerian Exchange Limited, “is to reduce the capital of the Company.

“As such, all shares purchased under the buy-back programme will be cancelled,” he said, assuring that the move “reflects the board’s confidence in the Company’s continued growth potential, the strength of its balance sheet and the consistent cash accretion at the holding company level.”

The buyback, which would be carried out in two tranches, it added, remains in line with the company’s existing capital allocation policy, assuring that the programme will be executed in accordance with applicable securities laws and regulation.

The first tranche, according to the notice, is billed for completion in four months from December 23, 2024, and end on or before April 24 2025.

While the first tranche will amount to a maximum of $50m, Aitel Africa, has entered into an agreement with Barclays Capital Securities Limited to conduct the first tranche of the buy-back and carry out on-market purchases of its ordinary shares with the company subsequently purchasing its ordinary shares from Barclays.

“Under this agreement, Barclays will act as riskless principal and will make decisions independently of the company,” it said, adding that further details of the share buy-back programme.

Any purchases of ordinary shares under the buy-back programme, it stressed, will be carried out in accordance with certain pre-set parameters set out in the agreement with Barclays and in accordance with (and subject to the limits prescribed by) the company’s general authority to repurchase ordinary shares granted by its shareholders from time to time.