Airtel Nigeria shareholders to pocket $148m as parent company moves to buy

Airtel Africa PLC has announced a move to buy back shares held by its Nigerian subsidiary Airtel Networks Ltd. It has initiated a process to buy back the 8.27% minority shareholdings.

The telecommunications company, in a notice to the Nigerian Exchange (NGX) Limited, said it plans to make the acquisition at an offer price of N55.81 per share.

According to Ripples Nigeria calculation assuming all shareholders tender their shares, it would result in a total price of around NGN61.24 billion, or $148.1 million.

Part of the notice reads: The exchange rate of N413.38/$1 at the Investors and Exporters (I&E) segment of the foreign exchange (FX) market in Nigeria will be used for the transaction.

READ ALSO: Airtel Nigeria pays NCC N72bn for operational license renewal

The move is coming as Airtel Africa last Friday announced that Mr. Olusegun Ogunsanya began his new role as Managing Director and Chief Executive.

Mr Ogunsanya joined the company in 2012 and was previously chief executive of Airtel Nigeria, responsible for the management of operations in the firm’s largest market.

Although, checks showed that the Nigerian market is yet to react to the various development.

However, shares of Airtel Africa on the London Stock Exchange, precisely on the FTSE-250 constituent, were down by 1.8 percent at 96.60 pence (approximately N534.90) on Monday at the time of this report.

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