As approving it would amount to aiding the billionaire in cash diversion, Ecobank Nigeria Limited has written to FBN Holdings Plc, the parent company of First Bank of Nigeria Limited, asking it to halt action on the reportedly purchased 4.77 billion shares by Dr. Oba Otudeko, Chairman of Honeywell Group.
In a notice posted last week on the Nigerian Exchange Limited, the group stated that Honeywell had purchased a total of 4,770,269,843 units of FBN Holdings shares through its affiliate, Barbican Capital Limited.
With the acquisition, the company’s ownership in the flagship bank increased to 13.3%, making it the dominant shareholder.
Two years after the Central Bank of Nigeria (CBN) disbanded the board he oversaw due to alleged insider abuses, the disclosure has caused Otudeko’s future course of action to be called into question.
Ecobank accused the businessman of trying to transfer funds intended to settle over N13.5 billion in debt to the lender in a letter signed by its legal counsel, Kunle Ogunba & Associates, and dated July 7, 2023, in response to concerns over his recently announced aggressive share accumulation.
According to the letter, the investor “personally guaranteed” the obligations, which competent courts have adjudicated in the bank’s favor.
It was claimed that many companies in which Otudeko has a stake owe the obligations, which are represented by principles and interests.
“Please be informed that our client has instituted several lawsuits against Honeywell Group Limited, Siloam Global Services Limited, Anchorage Leisures Limited, Honeywell flour Mills Plc and Dr. Oba Otudeko at the Federal High Court, Lagos, in view of recouping the humongous indebtedness of the highlighted entities to our client.”
“It is particularly noteworthy that Dr. Oba Otudeko personally guaranteed the loan leading to the humongous indebtedness of the prior-mentioned companies. 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 affirming the indebtedness of the above persons to our client and further commanded that they must pay all the outstanding debts…” The letter was addressed to the Managing Director/CEO of FBN Holdings, Nnamdi Okonkwo.
As of January 31, 2023, the bank said that the total value of all outstanding debts was N13.5 billion, “while interest continues to accrue on the due debts as legally sanctioned by the Supreme Court of Nigeria.”
“Instead of taking urgent steps to repay their indebtedness in line with the mandate of the Supreme Court, it has come to our notice that Dr. Oba Otudeko (being the prime mover and alter ego of the debtor companies who personally guaranteed to repay the said debt) has taken active steps to divert his assets/funds and those of the debtor companies. This, he has done, by using a company known as Barbican Capital Limited (special purpose vehicle) which was recently and hurriedly incorporated after the judgment of the Supreme Court (specifically on the 9th day of March, 2023)…”
“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,” Ecobank stated.
The letter pleaded with FBN to “respectfully stay/reject the approval/consent/registration/ratification” of the shares purchased by the aforementioned Barbican Capital and held via various entities because doing so “will be tantamount to assisting in the diversion of funds/assets meant for the payment of the debts.”
Additionally, it requested reports about the progress of the aforementioned transaction within seven days. Oludare Amusan signed the letter on ‘Kunle Ogunba’s behalf.
