Telecom company Airtel Africa announced that it has repurchased 1.9 million shares in its ongoing second tranche of its $100 million share buyback program. Following this development, Airtel Africa explained that the remaining ordinary shares in issue are 3.668 billion, including 7.5 million treasury shares.

In an announcement on Monday via a corporate filing on the Nigerian Exchange Limited (NGX), Airtel Africa’s secretary, Simon O’Hara, noted that the company purchased the ordinary shares at $0.50 each from Barclays Capital Securities Limited as part of the process.

“Airtel Africa announces today it has purchased the following number of its ordinary shares of USD 0.50 each from Barclays Capital Securities Limited pursuant to the authority granted by its shareholders as part of its share buy-back programme, details of which was announced on 14 May 2025,” the statement reads.

The regulatory filings revealed that transactions for the repurchase of the 1.9 million shares were completed over 10 deals. According to the company, the total number of voting rights left is 3,660,276,768. 

“This figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules,” it added.

In addition, Airtel Africa said that since it launched the first tranche of the buyback phase in December 2024, it has purchased 29,039,936 ordinary shares in aggregate, at a volume-weighted average price of 139.1748 GBP per ordinary share.

Recall that Airtel Africa had announced in May plans to repurchase more shares in the second phase of the programme after completing the first stage, which ran from December 23, 2024, to April 24, 2024.

Airtel Africa’s buyback process

Airtel Africa’s buyback initiative is rooted in reducing its capital base, where all shares repurchased during the exercise will be cancelled. 

The second buyback phase, launched in December 2024, is in line with its commitment to see through Airtel’s existing capital allocation policy targeted at reinforcing the company’s continued growth potential, the consistent cash accretion at the holding company level, and the balance sheet’s strength.

Explaining the share buyback process, Airtel Africa stressed that it would be executed in two tranches. The first, which concluded on April 24, 2025, while the second tranche, which commenced May 14, is expected to reach its conclusion by November 2025.

For the second tranche of its $100m share buyback programme, the repurchase is expected to yield a maximum of $55m. It explained that it would collaborate with Barclays Capital Securities Limited, which will carry out on-market purchases of the company’s ordinary shares, while Airtel Africa will subsequently purchase those shares from Barclays. It added that the Broker will act as a riskless principal who makes decisions independently of the Company.

“Any purchases of ordinary shares under the buyback programme will be carried out in accordance with certain pre-set parameters set out in the agreement with Barclays,” it said while emphasising that share repurchases may occur even during the company’s closed periods, as permitted by the agreement.

For Airtel Africa, the buyback phase demonstrated its commitment to enhancing shareholders’ value, which can lead to increased investor confidence and a potential surge in stock price. It also signals the company’s strategic focus on long-term growth that can positively impact its image in the eyes of investors.

The ongoing Airtel’s Africa’s second tranche share buyback program follows a significant financial turnaround for the telecom company with a reported profit after tax of $328 million in the fiscal year ending March 31, 2025 – a 468.2 per cent surge compared to the $89 million loss in FY’24, driven by increased data usage, tariff adjustments, and cost control measures.

Airtel Africa now boasts a 166.1 million customer base, signalling an 8.7 per cent increase. Smartphone penetration grew by 4.3 per cent to 44.8 per cent, data customers increased by 14.1 per cent to 73.4 million, and data usage per customer increased by 30.4 per cent to 7.0 GB.