Airtel Nigeria, a subsidiary of Airtel Africa Plc., has initiated a process to buyback 8.27 percent minority shareholdings at N55.81 per share, estimated at N61.24 billion.
This was contained in a notice filed on the Nigerian Exchange Limited (NGX) on Monday, by the company secretary at Airtel Africa Plc, Simon O’Hara.
Buyback is a corporate action in which a company 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.
O’Hara 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,” he 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.
Shares of Airtel Africa Plc traded flat at N715 per unit on the NGX, on Monday.
