Ecobank has called on First Bank Holdings to reject the acquisition of 4.7 billion shares by former Chairman Oba Otudeko, citing an outstanding debt owed by Otudeko’s affiliated entities. In a letter written by its Legal Counsel, Kunle Ogunba & Associates, Ecobank stated that Otudeko owed the bank N13.5 billion. The bank has initiated legal action against Honey Group Limited, Siloam Global Services Limited, Anchorage Leisures Limited, Honeywell Flour Mills Plc, and Dr. Oba Otudeko at the Federal High Court, Lagos, to recoup the debts.
The letter highlighted that the Supreme Court, in an appeal case, affirmed the indebtedness of the mentioned entities and commanded them to pay the outstanding debts. It was further stated that Dr. Oba Otudeko had personally guaranteed the loan leading to the indebtedness of these companies.
Ecobank alleged that instead of taking steps to repay the debt as mandated by the Supreme Court, Otudeko had taken actions to divert his assets/funds using a company called Barbican Capital Limited as a special purpose vehicle. It was revealed that Otudeko had allegedly purchased 4.7 billion shares of FBN Holdings Plc through Barbican Capital Limited, which were held by 10 different companies.
In light of these facts, Ecobank’s legal counsel demanded that First Bank Holdings reject the approval/registration of the shares acquired by Barbican Capital Limited. The letter emphasized that proceeding with such approval/registration would assist in the diversion of funds/assets meant for debt payment, which would violate the Supreme Court’s judgment.
Ecobank further requested details of the transaction within seven days and highlighted that as a responsible corporate entity, First Bank Holdings should not take actions that encourage the violation of a Supreme Court ruling.
The appeal by Ecobank comes after reports that Oba Otudeko’s Honeywell Group acquired a significant number of shares in First Bank of Nigeria Holdings Plc. Shareholders have expressed concerns over the validity of the trades and the potential consequences of Otudeko’s return to the bank, considering his previous exit and the outstanding debt owed to Ecobank.
