TheCable

Airtel Networks Limited (Airtel Nigeria) has initiated a process to buyback 8.27 percent minority shareholdings at N55.81 per share, estimated at N61.24 billion.

Buyback is a corporate action in which a company buys back (repurchase) its shares from the existing shareholders — usually at a price higher than the market price.

Ownership consolidation, stock undervaluation or boosting of a company’s key financial ratios are some of the few reasons for such action.

Airtel Nigeria is a subsidiary of Airtel Africa Plc.

In a notice filed on the Nigerian Exchange Limited (NGX) on Monday, Simon O’Hara, company secretary at Airtel Africa Plc, said the total consideration was estimated to be N61.24 billion (using an exchange rate of N413.38) if all minority shareholders decide to tender their shares.

“This represents an open offer to all shareholders. A further announcement will be made in due course,” O’Hara said.

In 2019, Airtel Africa listed 3,758,151,504 ordinary shares on the Nigerian Stock Exchange (now Nigerian Exchange Limited). The shares were listed at an offering price of N363 per ordinary share.

On Monday, shares of Airtel Africa Plc traded flat at N715 per unit on the NGX.

Meanwhile, Olusegun Ogunsanya has assumed office as the new managing director/chief executive officer, Airtel Africa Plc.

The company had announced his appointment in April 2021.

With more than 25 years of experience in business management experience in banking, consumer goods and telecoms, he will join the board of Africa’s telecoms firm.

“I am looking forward to building on the solid foundations the Group has established for future sustainable growth across Africa,” he said.

“Moving forward, we will invest even more in our network and distribution channels to serve the communities where we operate. By doing this, we will continue to sustainably bridge the digital divide, expand financial inclusion and meet the evolving needs of our customers.”