Airtel Africa buys back ₦385 million worth of it’s shares as part of its latest share buy-back programme

Airtel Africa, a leading telecommunications provider in Nigeria and across 13 other African countries, has made another strategic move to enhance shareholder value through its ongoing share buy-back programme.

On June 4, 2025, the company purchased 100,000 ordinary shares from Barclays Capital Securities Limited at a volume-weighted average price of 183.33 GBp (approximately ₦3,850 per share, based on an estimated ₦2,100/GBP exchange rate) as part of its $100 million share buy-back initiative announced on December 23, 2024.

Transaction Details

According to the notification posted on the Nigerian Exchange (NGX), Airtel Africa acquired 100,000 ordinary shares with a nominal value of USD 0.50 each. The shares were purchased across multiple trading venues, including the London Stock Exchange (72,040 shares), BATS Europe (9,263 shares), CHI-X Europe (17,029 shares), Aquis Exchange (173 shares), and Turquoise (1,495 shares).

Prices ranged from a low of 182.80 GBp to a high of 184.00 GBp, with the volume-weighted average price settling at 183.33 GBp.

The total value of the transaction is approximately ₦385 million, reflecting Airtel Africa’s significant investment to buy back its own stock. These shares will be cancelled, reducing the total number of shares in issue to 3,668,215,812, with 3,660,726,768 voting rights after accounting for 7,489,044 treasury shares.

Purpose and Significance of the Buy-Back

Share buy-back programmes are often employed by companies to signal confidence in their future growth and to enhance shareholder value. By reducing the number of outstanding shares, Airtel Africa aims to increase earnings per share (EPS), potentially making its stock more attractive to investors. This move also reflects the company’s strong cash position and its belief that its shares are undervalued, offering an opportunity to reinvest in itself. For Nigerian shareholders, this could translate to higher dividends per share in the future, assuming the company maintains its dividend policy, and improved stock liquidity on the NGX.

Since the programme’s inception in December 2024, Airtel Africa has repurchased 28,589,936 shares at an average price of 138.5143 GBp, demonstrating a consistent effort to optimize its capital structure. This strategy aligns with the company’s broader financial goals of maintaining a robust balance sheet while supporting growth initiatives across its African markets.

Impact on Nigerian Investors

Airtel Africa is a household name in Nigeria, providing mobile voice, data, and mobile money services to millions. As one of the largest telecom operators in the country, alongside MTN Nigeria, its financial decisions carry significant weight for local investors.

The share buy-back could enhance its share value, making the stock more attractive on the NGX, potentially driving demand, and increasing its share price.

For Nigerian investors, this signals Airtel Africa’s confidence in its long-term prospects, particularly in Nigeria, where it continues to expand its 4G and 5G networks and mobile money services with Airtel Money.

Airtel Africa’s latest share buy-back is a strategic step to reinforce its financial health and reward shareholders. For Nigerian investors, this move underscores the company’s stability and growth potential in a competitive telecom market. As Airtel Africa continues to innovate and expand in Nigeria, these financial maneuvers will translate into long-term value, both in terms of stock performance and the company’s contributions to Nigeria’s digital landscape.

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