Wireless operator Airtel Africa kicked off a share repurchase programme on Friday, aiming to buy back up to 1 per cent of its issued share capital as part of plans to return cash to shareholders.
The move is a major component of the telco’s capital allocation policy, the company, which operates in 14 markets across Africa, stated in a statement on Friday.
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“As the initial tranche of the Programme, the Company has entered into an agreement with Barclays Capital Securities Limited (“Barclays”) to conduct the programme and carry out on-market purchases of its ordinary shares with the Company subsequently purchasing its ordinary shares from Barclays,” Airtel Africa said.
“Barclays will act as riskless principal pursuant to the agreement,” it added.
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The agreement allows Barclays to buy up to $60m of ordinary shares (and not less than $50 million) and make trading decisions independently of the company.
It also permits Airtel Africa to provide instructions to Barclays for the purchase up to extra $50 million of ordinary shares, at its discretion and subject to the provisions of the Market Abuse Regulation (EU) No 596/2014.
The deal takes effect on Friday, and remains valid until 27 November, except it is terminated ahead of that date in accordance with the terms.
Share buybacks allow a company to buy its own shares in order to reduce the volume of shares available on the open market, in turn strengthening the value of remaining shares.
In the year ended 31 March 2026, the mobile service provider repurchased 26.2 million shares (7.5 million in the first tranche and 18.7 million in the second tranche) to complete a share buyback programme of $100 million.
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According to its audited financial statements for the period, its outstanding shares as of 31 March 2026 stood at 3.65 billion units. Using that figure, the 1 per cent of the company’s issued share capital, which is proposed to be repurchased under the new programme, is equivalent to 36.55 million shares.
Airtel Africa is planning to spin off its mobile money business from its core telecoms operations, with the initial public offering (IPO) earlier proposed for the unit now put on hold until the second half of this year amid market uncertainties arising from the ongoing Middle East conflict.
The IPO expects to raise between $1.5 billion and $2 billion towards a potential listing on the London Stock Exchange.
