….Files Correction Notice In Final Results Announcement
By Kelechukwu Mgboji InvestAdvocate
Lagos (INVESTADVOCATE)-Airtel Africa has revealed its acquisition of own shares on the London Stock Exchange from Citigroup Global Markets Limited, as part of its ongoing share buy-back program.
In a notice filed on the Nigerian Exchange (NGX) on Tuesday, May 14, the telecommunications giant dually quoted on NGX and the London Stock Exchange disclosed that the purchased ordinary shares totaling 13,830,889 units, and each valued at US $0.50, would be subsequently cancelled out.
The Company also filed a correction notice relating to a typographical error in its Final Results Announcement dated May 9, 2024.
The Correction Notice also filed today stated that “the correct last date for currency election” is July 8, 2024, and not as previously stated, attributing the wrong information to an inadvertent typographical error.
According to the statement, the acquisition of own shares was in line with the authority granted by its shareholders, details of which resolutions were earlier disclosed on March 1, 2024.
On April 19, the company had purchased an aggregate number of 40, 921 ordinary shares at $0.50 each also from Citigroup Global Limited.
A share buyback program implies an offer by Airtel to buy-back its shares from the markets, reducing the number of outstanding shares on the market, and thus strengthening price valuation of the equity. Shareholders and companies can either follow the Tender offer route or Open Market route.
The buyback program, which began on March 1, 2024, involves the re¬purchase of $100 million worth of Air¬tel Africa’s shares in 12 months and is divided into two tranches, with the first tranche of $50 million running from March to August 2024. The buyback program will help reduce share capi¬tal and lower debt and operating costs.
Since the inception of the share buy-back initiative announced earlier this year, Airtel Africa has effectively bought back 13,830,889 ordinary shares in total. These transactions were executed at a volume-weighted average price of GBp 100.49 per ordinary share.
