Ecobank seeks FBN Holdings’ disapproval of Otudeko’s stake over alleged N13.5bn debt

Ecobank Nigeria has written FBN Holdings Plc, asking the financial services group not to recognise the 4.8 billion shares recently acquired by former chairman, Oba Otudeko.

The local unit of Lomé-based Ecobank Transnational Incorporated made the request through its solicitor, ‘Kunle Ogunba & Associates, in a letter dated 7 July 2023.

The solicitor noted in the letter seen by PREMIUM TIMES that the bank made the request because of Mr Otudeko’s failure to clear a debt totalling N13.5 billion.

Ecobank noted that it initiated a legal action against Honeywell Group Limited, Anchorage Leisures Limited, Siloam Global Services Limited and Mr Otudeko at the Federal High Court in Lagos, aimed at recovering the debt.

According to the document, the four disputed their indebtedness to Ecobank, but a Supreme Court judgment on 27 January 2023, affirmed the indebtedness, ordering them to pay N13.5 billion from the loan contract said to be personally guaranteed by Mr Otudeko.

On the same day the letter was issued, FBN Holdings had written the Nigerian Exchange to notify the bourse of acquiring a 13.3 per cent holding in the financial services group by Barbican Capital Limited, an affiliate of Honeywell Group.

Barbican Capital was registered in Nigeria on 9 March 2023 and has Otudeko Obafemi Adedamola and Oyeleye Foluke as persons with significant control, according to PREMIUM TIMES check with Corporate Affairs Commission.

“Instead of taking urgent steps to repay their indebtedness in line with the mandate of the Supreme Court, it has come to our notice that Dr Oba Otudeko (being the prime mover and alter ego of the debtor companies who personally guaranteed to repay the said debt) has taken active steps to divert his assets/funds and those of the debtor companies,” the lawyers said.

“This he has done by using a company known as Barbican Capital Limited (special purpose vehicle), which was recently and hurriedly incorporated after the judgement of the Supreme Court (specifically on 9th March 2023,” they added.

Ecobank remarked through his solicitors that Mr Otudeko’s actions are targeted at diverting his assets and those of Honeywell Group of Companies through Barbican Capital so as to frustrate the execution of the apex court judgment against him.

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The solicitors requested FBN Holdings to refrain from approving the shares, given that “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.”

They equally requested the corporation to furnish them with the details of the status of the transaction in the next seven days.

Mr Otudeko, who chaired the group’s board until a shake-up ended his tenure in April 2021, controls Honeywell Flour Mill. The businessman owns a 75 per cent stake in the company through Siloam Global Services Limited, according to the company’s 2022 earnings report.