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 bought 4.77 billion shares by Dr. Oba Otudeko, Chairman of Honeywell Group.
In a notification posted last week on the Nigerian Exchange Limited, the firm stated that Honeywell had purchased a total of 4,770,269,843 units of FBN Holdings shares through its subsidiary, 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 suspected insider abuses, the discovery has caused Otudeko’s future course of action to be called into doubt.
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 newly 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 firms in which Otudeko has a stake owing the obligations, which are represented by principles and interests.
“Please be advised that our client has filed several lawsuits at the Federal High Court in Lagos against Honeywell Group Limited, Siloam Global Services Limited, Anchorage Leisures Limited, Honeywell flour Mills Plc, and Dr. Oba Otudeko in an effort to recover the enormous debts owed to our client by the entities highlighted in the lawsuits.
The fact that Dr. Oba Otudeko personally guaranteed the loan that resulted in the enormous debt of the aforementioned firms is particularly remarkable. Whereas the aforementioned entities initially denied their debt to our client and as a result brought a lawsuit to that effect, the Supreme Court rendered judgment on January 27, 2023 in Appeal No. SC/CV/210/2021 affirming the aforementioned parties’ debt to our client and further ordering that they pay all outstanding debts. The letter was sent to Nnamdi Okonkwo, managing director and CEO of FBN Holdings.
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.”
“It has come to our attention that Dr. Oba Otudeko, the principal 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, instead of taking urgent steps to repay their indebtedness in accordance with the mandate of the Supreme Court. He accomplished this by utilizing a special purpose entity called Barbican Capital Limited, which was recently and hastily formed in response to the Supreme Court’s ruling (more precisely, on March 9, 2023)…
“It is beyond a shadow of a doubt that the actions being taken by Dr. Oba Otudeko are targeted at diverting his assets and those 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 noted.
It urged 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 aiding in the diversion of funds/assets intended for the payment of 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.