- Airtel Africa bought back 8.22% of the shareholdings in Airtel Nigeria, thus bringing its total stake in the Nigerian unit to 99.96%.
- This is coming at the same time Airtel’s main competitor, MTN, is selling off more of its shares to retail investors in Nigeria.
- Both telecom companies are listed on the Nigerian Exchange Limited.
Airtel Africa, a front-line African telecommunication company with recognition in 14 countries, announced earlier today that it has successfully completed a minority share buyback in Airtel Networks Limited in its Nigerian subsidiary.
The share buyback was first announced on October 4th, and the plan was to recover 8.27% minority shareholdings at $0.13 (N55.81) per share. However, in the latest regulatory filing with the Nigerian Exchange Limited, Airtel Africa noted that it ended up buying back 8.22% of the shares, thereby bringing its total shareholdings in the Nigerian unit to 99.96%.
“The total consideration for the 8.22% minority shareholdings acquired under the buyback is NGN 61bn, equivalent to $147m using an exchange rate of 415.07 NGN/USD. As a result, Airtel Africa now holds 99.96% ownership over its largest subsidiary.
Interestingly, the announcement is coming around the same time when Airtel Africa’s main competitor, MTN Group Limited, has decided to sell off more of its shares in MTN Nigeria Communications Plc to retail investors. Just yesterday, it was by CNN reported that MTN Group had opened an offer to sell 575 million of the ordinary shares in its Nigerian subsidiary to retail investors.
MTN Group’s Chief Executive Officer, Ralph Mupita, explained that the transaction was a first in a series of other public offers planned for the Nigerian market. Seemingly, the rationale behind the sale is to make room for Nigerian investors’ broad-based ownership of MTN shares. Mr. Mupita stated that the public offer, which was priced at $0.41 (N169) per share, would help deepen Nigeria’s capital market.
