Fakoyejo OlalekanThe Chairman of Honeywell Group, Oba Otudeko, has denied Ecobank’s disclosure that the Supreme Court granted the N13.5 billion debt claim against the investor.
Ecobank had made this known in a letter sent to First Bank Nigeria (FBN) Holdings, requesting that the share acquisition by Otudeko be rejected due to lawsuits against him and his companies.
Recall that Otudeko had acquired 4.77 billion shares in FBN Holdings, to take a 13.3 per cent controlling stake in the company. The deal was estimated to be worth around N100 billion.
FBN Holdings was warned by Ecobank that approving the deal that will see Otudeko become the former’s largest shareholder, will be viewed as an attempt to help the investor divert funds that should be used to clear the debt.
However, Otudeko, through his lawyer, Wole Olanipekun, said no court in Nigeria made such a ruling against him and his companies, advising FBN Holdings to snub Ecobank’s demands.
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In a letter dated 10 July 2023, and addressed to FBN Holdings, Otudeko said: “We write at the instance of Dr. Oba Otudeko, CFR and Honeywell Group Ltd. (our Clients), whose attention have been drawn to a letter dated 7th July, 2023 (written on the instruction of Ecobank Nig. Ltd.) with the above subject.
“Even though, the author(s) of the letter refused to deliver copies to our clients, and/or the other entities referred to in the letter (which has been widely circulated in the media space), it is our instruction to respond as follows:
“Whereas, the letter falsely alleges that there was a decision of the Supreme Court in SC/CV/210/2021 made on 27th January, 2023 “affirming the indebtedness” of our clients and that the decision also”commanded” our above stated clients to perform certain acts, neither Dr. Oba Otudeko, CFR nor Honeywell Group PIc was a party to the Supreme Court decision/proceedings and no order was made against them.
“Thus, the further statement in the letter that “…the actions being taken by Dr. Oba Otudeko is (sic) … in order to frustrate the enforcement of the judgment of the Supreme Court against him” is without any factual or inferential basis arising from the express terms/contents of the judgment.
“Ecobank was the defendant in the claim at the Federal High Court which culminated in the decision of the Supreme Court in SC/CV/210/2021.
“The Bank had no counterclaim right from the Federal High Court through to the Supreme Court and, naturally, the Supreme Court could not have, and, indeed did not grant or award any claim in favour of the Bank.”
Otudeko also requested that FBN Holdings shouldn’t disclose details of the share transactions as demanded by Ecobank, stating that there’s a need for a court order to make FBN Holdings adhere to such request.
“As you are aware, the duties of the Chief Executive Officer of a financial institution are statutory and they do not extend to the various actions Ecobank’s letter requested you to perform, including but not limited to intervention in transactions between third parties on the Nigerian Exchange,” the letter adds.
“The level of seriousness to be ascribed to the letter can easily be appreciated from its title which has referred to “SHARES …… IN FBN HOLDINGS PLC OR IN ANYOTHER ENTITY” as if the responsibilities of your office extend to the outfit(s) vaguely/nebulously referred to as “ANY OTHER ENTITY”.
“We are convinced that you also appreciate the confidentiality obligations incumbent on your person, office and institution which are inconsistent with the requests in Ecobank’s letter; especially when there is no express order of Court mandating such disclosures.”
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