“We’re Watching Events”: CBN Speaks on Ecobank, Otudeko, And First Bank Saga
- A source at the Central Bank of Nigeria has said it is observing the situation between Oba Otudeko and Ecobank over ownership of First Bank shares
- The sources said CBN will make its decision known in due time regarding the tussle between the bank and the businessman
- Ecobank is asking First Bank to reject the share acquisition by Otudeko as that would violate a Supreme Court ruling affirming Otudeko’s indebtedness
A source at the Central Bank of Nigeria (CBN) has said the apex bank is keenly monitoring events as they unfold between Ecobank and Oba Otudeko over the purchase of majority shares of FBN Holdings, the parent company of First Bank.
With over 30 million customers and deposits of over N7.6 trillion, experts say the intervention of CBN and the Securities and Exchange Commission (SEC) is critical now.
Source: UGC
Ecobank moves to block Oba Otudeko from taking over First Bank
The development follows Ecobank's move to take over the newly acquired shares of First Bank by Oba Otudeko due to his indebtedness to the bank.
PAY ATTENTION: Join Legit.ng Telegram channel! Never miss important updates!
Otudeko and his companies owe Ecobank over N13.5 billion.
Ecobank filed a lawsuit in 2017 against Otudeko and his companies, including Honeywell Group Limited, Sloam Global Services, and two other firms owned by the businessman at the Federal High Court in Lagos to recover the debt.
The Supreme Court affirmed Otudeko’s indebtedness to the bank in January this year.
Ecobank, in a letter to the CEO of First Bank, accused Otudeko of deliberately diverting his and his firms’ assets to evade debt repayment in violation of the Supreme Court’s order.
The bank said that instead of repaying the debts, Otudeko took steps to divert his assets and funds via a newly created Special Purpose Vehicle (SPV) called Barbican Capital Limited.
Ecobank urged First Bank to reject the acknowledgment of the shares belonging to Otudeko as that would violate the Supreme Court ruling.
First Bank notifies Nigerians about Otudeko's shareholding
In the letter, Ecobank demanded that First Bank provide information about the transaction status regarding the share purchase by Otudeko within seven days.
It is still being determined if First Bank will heed to Ecobank's request, as the bank has already notified the public via a letter to the Nigeria Exchange Limited (NGX) of a 13.3% acquisition of the shares declared by the SPV.
According to reporting by Daily Trust, a senior management source at CBN said that the bank is observing proceedings and will make its intervention known at the right time.
Oba Otudeko fights Back, takes over First Bank from Otedola as largest shareholder
Legit.ng reported that Honeywell Group, owned by Oba Otudeko, notified the Securities and Exchange Commission of acquiring additional equity of almost five billion shares of First Bank of Nigeria.
The acquisition notice was also sent to FBN Holdings via a Honeywell Group affiliate, Barbican Capital Limited.
A statement on Honeywell's website said that the company had notified FBN Holdings and regulatory authorities of the acquisition of 4,770,269,843 shares of FBN by its sister company, Barbican Capital Limited.
Source: Legit.ng
