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Ecobank pleads with First Bank Holdings to reject the 4.7 billion shares acquisition of their former Chairman, Dr Oba Otudeko.
The request was made through a letter from Ecobank's Legal Counsel, Kunle Ogunba & Associates, which highlighted that Dr Otudeko and his affiliated entities owed the bank a sum of N13.5 billion.
The letter, dated July 7 and signed by Oludare Amusan, the Principal Partner of the law firm, disclosed that Ecobank had initiated multiple lawsuits against Honey Group Limited, Siloam Global Services Limited, Anchorage Leisures Limited, Honeywell Flour Mills Plc, and Dr. Oba Otudeko at the Federal High Court in Lagos. These legal actions were undertaken to recover the debts owed by the mentioned entities.
It was revealed in the letter that Dr Otudeko had personally guaranteed the loan, leading to the indebtedness of the aforementioned companies. The letter stated, "Whereas, the prior-mentioned entities had initially disputed their indebtedness to our client and had consequently filed an action in court to that effect, the Supreme Court on the 27th day of January 2023 in Appeal No. SC/CV/210/2021 delivered Judgment (A certified true copy of which is herein attached) affirming the indebtedness of the above persons to our client and further commanded that they must pay all the outstanding debts that have accrued under the loan contract between the parties; the same debt personally guaranteed by Dr Oba Otudeko, which said indebted stood in the sum of N13,507,052,417.99."
Ecobank, through its legal representatives, alleged that instead of taking immediate steps to repay the debts in accordance with the Supreme Court's mandate, it had come to their attention that Dr Otudeko, who had personally guaranteed the debt, had taken actions to divert his assets/funds using a company named Barbican Capital Limited as a special purpose vehicle.
According to the letter, "We state that the said Dr Oba Otudeko has via the said Barbican Capital Limited allegedly purchased 4,770,269,843 (Four billion, seven hundred and seventy million, two hundred and sixty-nine thousand, eight hundred and forty-three) shares of FBN Holdings Plc."
The letter revealed that the shares were purchased through 19 business entities and were currently being held by 10 different companies. Based on these facts, the law firm argued that Dr Otudeko's actions were clearly aimed at diverting his assets and those of the Honeywell Group of Companies through Barbican Capital Limited, with the intention of obstructing the enforcement of the Supreme Court's judgment against him and the Honeywell companies, thus hindering the recovery of their undisputed indebtedness to Ecobank.
In light of these allegations, the letter demanded that First Bank Holdings refrain from approving or registering the shares bought by Barbican Capital Limited through the mentioned entities. Proceeding with such actions, according to the letter, would assist in the diversion of funds/assets intended for the payment of the debt affirmed by the Supreme Court, which would constitute a flagrant violation of the court's judgment and the resolution of the outstanding indebtedness between the Honeywell Group and Ecobank Nigeria Limited.
Furthermore, the letter requested that details of the said transaction be provided within seven days. It emphasized that as a responsible corporate entity, FBN Holdings should not take any action that encourages the violation of a Supreme Court ruling.
Dr Otudeko, the former chairman of First Bank, is believed to be attempting to become the bank's largest shareholder once again. In 2021, billionaire Femi Otedola became the bank's largest shareholder after a power struggle with Hassan Odukale, who also sought control of the bank following Otudeko's departure.
In response to Otudeko's bid to regain control of the bank, some shareholders convened a meeting on Monday to discuss the matter. These shareholders were determined to prevent Otudeko from assuming control of the bank, particularly considering his previous removal by the Central Bank in 2021.
