Ecobank to FBN: Reject Otudeko’s N87.6bn share acquisition

Ecobank has kicked against the acquisition of 4.7 billion shares of First Bank Holdings by Oba Otudeko, a former chairman of the Tier-I bank.

The bank in a protest letter written by its Legal Counsel, Kunle Ogunba & Associates, asked FirstBank to reject the transaction.

The letter, dated July 7 and signed by the Principal Partner of the law firm, Oludare Amusan, stated that Otudeko, through his companies, is owning Ecobank N13.5 billion.

It said the bank had instituted several lawsuits against Honey Group Limited, Siloam Global Services Limited, Anchorage Leisures Limited, Honeywell flour Mills Plc and Oba Otudeko at the Federal High Court, Lagos in a bid to recouping the debts.

The letter read: “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 (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.

“We state that the said Dr Oba Otudeko has via the said Barbican Capital Limited allegedly purchased 4,770, 269, 843 shares of FBN Holdings Plc.

“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 judgement 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, howsoever described and in whatever manner, of the shares bought by the said Barbican Capital Limited held via the afforested entities.

“Proceeding with such approval/registration will be tantamount to assisting in the diversion of funds and assets meant for the payment of the debt which has been affirmed by the Supreme Court, same being a flagrant violation of the extant judgement of the Supreme Court and which has effectively determined the outstanding indebtedness between the Honeywell Group and our client, Ecobank Nigeria Limited,” the letter stated.

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The Star had reported that Otudeko purchased 4.7 billion shares of the First Bank of Nigeria Holdings (FBNH), making him the single largest shareholder.

Otudeko, who held 1.49 per cent of First Bank shares in 2021, increased his stake in a cross deal worth N87.8 billion on Thursday, July 6, 2023.

The FBNH, while acknowledging Honeywell Group Limited’s acquisitions via a letter signed by its acting secretary, Adewale Arogundade, said: “This is to inform the public and our stakeholders that the Company received a notification dated July 7, 2023, from Honeywell Group Limited that its affiliate, Barbican Capital Limited, has acquired an aggregate of 4,770,269,843 units of shares from the Company’s issued share capital of 35,895,292,791, as at the above-referenced date. Based on the foregoing, the equity stake of Barbican Capital Limited in the Company is 13.3%.”

Femi Otedola became the bank’s single largest shareholder in 2021 after a tussle with Hassan Odukale who was also vying for control of the bank after a leadership gap emerged from Otudeko’s exit.

Otudeko now leads the battle for the control of First Bank with 14 per cent shareholding, while Otedola drops to second with nine per cent.

Messrs Odukale and Adenuga are joint third, each with seven per cent shareholding, while Saheed Arisekola is fourth with a five per cent shareholding.

The Star