Ecobank calls on FBN to reject Otudeko’s N106.37bn investment over debts owed

The Receiver Manager acting on behalf of Ecobank Nigeria Limited, Kunle Ogunba and Associates, has demanded that First Bank of Nigeria (FBN) Holdings reject the acquisition of its shares by Oba Otudeko.

Otudeko was accused of owing Ecobank N13.5 billion as of January 31, 2023, after the Supreme Court reportedly ruled that the investor is indebted to the lender.

Recall that Ripples Nigeria previously reported that Otudeko acquired 4.77 billion shares of FBN Holdings last week, which is worth N106.37 billion as of Monday.

According to reports, Kunle Ogunba and Associates wrote to FBN Holdings in a letter dated July 7, 2023, that to prevent the diversion of funds meant for the settlement of the debt Otudeko owes, FBN Holdings should not recognise the shares acquired by the investor.

In the letter, it was revealed that the debt is split among Otudeko’s companies; Honeywell Group Limited, Siloam Global Services Limited and Anchorage Leisures Limited, as well as Honeywell Flour Mills PLC, which has been sold to Flour Mills.

The Receiver Manager disclosed that the Supreme Court, on January 27, 2023, ruled in favour of Ecobank, validating the lender’s claim of Otudeko and his companies owing the financial institution.

READ ALSO:Oba Otudeko’s Barbican Capital displaces Otedola as First Bank Holdings majority shareholder

Otudeko has denied being indebted to Ecobank and has appealed the court’s decision, however, the debt ruling still holds, “Please be informed that our client instituted several lawsuits against Honeywell Group Limited, Siloam Global Services Limited, Anchorage Leisures Limited, Honeywell flour Mills PIc, 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,” the letter reads.

It further disclosed that: “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 of January 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; being the same debt personally guaranteed by Dr. Oba O t u d e k o, which said indebtedness stood in the sum of N13,507,052,417.99 (Thirteen Billion, Five Hundred and Seven Million, Fifty -Two Thousand, Four Hundred and Seventeen Naira, Ninety-Nine Kobo) as at the 31st day of January 2023 whilst interest continues to accrue on the due debts as legally sanctioned by the Supreme Court of Nigeria, the highest court in the land, aforesaid!”

Ecobank explicitly demanded that the shares shouldn’t be transferred to Otudeko or that his acquisition through Barbican Capital Limited be rejected.

The letter reads: “We therefore demand that you respectfully stay/reject/approval/consent/registration/ ratification {howsoever described or in whatsoever 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 judgment of the Supreme and which has effectively determined the outstanding indebtedness between the Honeywell Group and our client, Ecobank Nigeria Limited.”

As of the time of filing this report, FBN Holdings, Ecobank and Kunle Ogunba & Associates were yet to respond to Ripples Nigeria’s enquiry.

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