Ecobank requests that FBN reject Otudeko’s portion securing eleventh July 2023

Ecobank has urged First Bank Holdings to reject Dr. Oba Otudeko’s purchase of 4.7 billion shares from the bank.

In a letter from its Legal Counsel, Kunle Ogunba & Associates, the bank raised the alarm by stating that the business magnate owed theFamily requests equity as power-smashed vigilantes shoot Abuja vagrants eleventh July 2023 bank N13.5 billion through his affiliated entities.

According to the letter, which was dated july 7 and was signed by Oludare Amusan, the principal partner of the law firm, the bank had filed several lawsuits at the Federal High Court in Lagos against Honey Group Limited, Siloam Global Services Limited, Anchorage Leisures Limited, Honeywell flour Mills PIc, and Dr. Oba Otudeko.

The letter that was made public stated that the purpose of the legal dispute between Otudeko and the bank was to recover debts that were owed by the highlighted business entities.

According to the letter, Otudeko personally guaranteed the loan that led to the companies’ debt.

“Whereas, the preceding 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. In accordance with SC/CV/210/2021, a judgment was handed down (a certified, true copy of which is attached), stating that the aforementioned parties owe money to our client and directing them to pay off any and all outstanding debts arising from the loan agreement between the parties. a similar obligation by and by ensured by Dr Oba Otudeko, which said obliged remained in the amount of N13,507,052,417.99.”

Through its lawyers, the bank claimed that Otudeko, who had personally guaranteed to pay the debt, had used a company called Barbican Capital Limited as a special purpose vehicle to divert his assets and funds rather than taking immediate action to repay the debt in accordance with the Supreme Court’s mandate.

The letter read, “We express that the said Dr Oba Otudeko has through the said Barbican Capital Restricted purportedly bought 4,770, 269, 843, (Four billion, 700 and seventy million, 200 and 69 thousand, 800 and 43) portions of FBN Property Plc.”

The letter said the bank had been educated that the said shares were bought through 19 business elements and were as of now being held by 10 unique organizations.

Putting together its contention with respect to the previously mentioned realities, the law office said that it was certain that the moves being made by Otudeko were designated as redirecting his resources and that of the Honeywell Gathering of Organizations through the said Barbican Capital Restricted, to baffle the requirement of the judgment of the High Court against him and the Honeywell organizations, towards recuperating his/their unđisputed obligation to Ecobank.

The letter continued, “We therefore demand that you respectfully stay/reject the approval/consent/registration/ratification howsoever described or in whatever manner of the 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, same being a flagrant violation of the extant

The letter likewise requested the subtleties of the expressed exchange inside the resulting seven days, taking note of that as a capable corporate element, FBN Possessions was not supposed to make a move that would energize the infringement of a high court administering.

An earlier report that The Oba Otudeko’s Honeywell Group had purchased the largest shares of First Bank of Nigeria Holdings Plc in a cross-deal worth N87.8 billion prompted the lender’s appeal.

The offers which Otudeko purchased at N19 per unit were the biggest volume of First Bank shares exchanged a solitary day beginning around 2012 when the stock trade began distributing information.

Given that no single shareholder had previously held as many shares officially, the acquisition of the shares raised concerns regarding the legitimacy of the transactions.

Otudeko, who was director of First Bank until 2019, was accepted to get back in the saddle to turn into the single biggest investor of the bank.

In 2021, billionaire Femi Otedola defeated Hassan Odukale, who was also vying for control of the bank after Otudeko’s departure created a leadership gap, to become the bank’s single largest shareholder.

Some company shareholders reportedly met on Tuesday to discuss the matter in response to the billionaire’s attempt to return to the bank.

The investors, who were keen on keeping Otudeko from assuming command over the bank, were supposed to be worried about the outcomes of having Otudeko back in charge of the bank in any way, particularly subsequent to being casually expelled by the national bank in 2021.