By Onome Amuge.
Ecobank Nigeria Limited has called on First Bank Nigeria (FBN) Holdings to reject the acquisition of 4.8 billion units of shares worth N87.8 billion by Obafemi Otudeko, its former chairman over an alleged failure to clear a debt totaling N13.5 billion.
The demand comes a few days after FBN Holdings confirmed that Otudeko’s affiliate, Barbican Capital Limited, acquired a 13 percent stake of the 35.9 billion shares issued by the company.
In a letter addressed to FBN Holdings Plc dated July 7 2023, Kunle Ogunba & Associates,the legal firm representing Ecobank alleged that Otudeko’s acquisition which is the largest volume of First bank shares traded in a single day since 2012, was a clever ploy to divert funds and frustrate payment of the said debt.
Ecobank stated that the Supreme Court had in its judgment on January 27 2023, in Appeal No SC/CV/210/2021, affirmed the indebtedness of several companies related to Otudeko and ordered the companies to pay their indebtedness to the bank.
According to the bank, further investigation showed that the shares purchased by Otudeko,who is also the founder and chairman of Honeywell Flour Mill, were held in the names of “Peace Account GASL Nominee Limited, Bluenote Ltd., RAML/MEF9, RAML Account Management Services, Monarch Securities Ltd., Mansion House Limited., Alliance Estates Ltd., Edebvale Ltd., Metropolitan Trust Nig. Ltd, and Spring Water Limited.
The letter said the bank had been informed that the said shares were purchased via 19 business entities and were currently being held by 10 different companies.
The letter further read; “Consequent upon the foregoing crystalised facts, it is beyond doubt that the actions being taken by Dr. Oba Otudeko are targeted at diverting his assets and that of the Honeywell Group of companies through the said Barbican Capital Limited, in order to frustrate the enforcement of the judgment of the Supreme Court against him and the Honeywell companies, towards recovering his/their undisputed indebtedness to our client.
“We, therefore, demand that you respectfully stay/reject the approval/consent/registration/ratification (however described or in whatsoever manner) of shares bought by the said Barbican Capital Limited held via the afforested entities, as proceeding with such approval/registration will be tantamount to assisting in the diversion of funds/assets meant for the payment of the debt which has been affirmed by the supreme court.”
