Airtel Africa, a leading provider of telecommunications and mobile money services, with offices in 14 nations across Africa, on Monday announced that its subsidiary Airtel Networks Limited (‘Airtel Nigeria’), a leading provider of telecommunications services in Nigeria, has initiated a process under which it seeks to buy back the 8.27 percent minority shareholdings at an offer price of N55.81 per share.
The company disclosed in a statement filed with the Nigerian Exchange Limited and seen by Investors King.
According to the statement if all holders agreed to sell their shares, the total buy back is estimated at N61.24 billion (c$148.1mn using an exchange rate of 413.38 NGN/USD).
Therefore, the telecommunication giant, disclosed that this represents an open offer to all shareholders.
A share buyback or repurchase is the re-acquisition by a company of its own shares. It represents an alternate and more flexible way of returning money to shareholders.
Share buyback sends a positive signal as the company is investing in its own shares because it is positive about its own future prospects.
