Airtel Africa gets court approval to increase shareholder returns

Airtel Africa has received important legal approval from a UK court. This approval is for a capital reduction plan that aims to increase its distributable reserves for future shareholder returns. The London-based company shared this news on Wednesday.

This approval puts Africa's second-largest mobile operator one step closer to completing the process. They already got the support of shareholders for this plan at their annual general meeting last week.

The capital reduction means that Airtel Africa will cancel its capital redemption reserve to increase its distributable reserves. These reserves are crucial for the company to provide future rewards to its shareholders.

These rewards can include dividends, distributions, or buybacks of shares.

A capital redemption reserve holds cash that comes from buying back a company’s shares. It can also include cash earned from issuing new shares.

In the financial year that ended on March 31, 2026, the wireless carrier bought back 26.2 million shares through a buyback program, spending $100 million.

They started another program in May. This one allows Barclays Capital Securities Limited to buy back 1 percent of its issued share capital. This could amount to up to $60 million in ordinary shares, but not less than $50 million.

PREMIUM TIMES estimates that the number of shares that could be bought back from this plan is about 36.55 million shares, based on Airtel’s issued shares at the end of the last financial year.

The company said, "The order of the High Court confirming the Capital Reduction (the 'Court Order'), and the statement of capital approved by the High Court in connection with the same, have been delivered to the Registrar of Companies."

They added, "The Capital Reduction will become effective upon the registration of the Court Order and the statement of capital by the Registrar of Companies."

Airtel Africa believes this move will not affect the rights related to its shares or its issued share capital.

Earlier on Wednesday, Financial Times reported that the telecom company is bringing in new investment banks to join Citi. They will help underwrite the IPO of its mobile money business, which could be worth around $10 billion.

The Rise Fund, Qatar Investment Authority, Mastercard, and Abu Dhabi-based Chimera Investment LLC already have minority stakes in the company.