FBN Holdings’ 5.4bn Shares Crisis: Court Fixes Oct. 21 To Hear Pending Applications/Ecobank’s Motion For Judge’s Recusal

A Lagos Federal High Court, today fixed October 21 for hearing of pending applications in a suit filed by an investment firm, Barbican Capital Limited against FBN Holdings Plc over alleged alteration of its 5.4 billion shares.

Justice Ayokunle Faji adjourned the suit following an application by counsel to Ecobank Plc, Mr. Kunle Ogunba (SAN) seeking to be joined in the suit.

At todays’ proceedings, Mr. ‘Bode Olanipekun (SAN) led a team on behalf of the Plaintiff (Barbican Capital Limited); while Babajide Koku (SAN), appeared for the FBN Holdings Plc (1st defendant/counter-claimant); Hakeem O. Afolabi (SAN) appeared for the third party joined by the court (2nd Defendant); while Ogunba (SAN) appeared for Ecobank Nigeria Limited (party sought to be joined/Applicant).

During the proceedings, counsel for Central Bank of Nigeria (CBN), Afolabi (SAN) stated that at the last adjourned date, CBN was joined as a party to the suit by the court.

He also told the court that they have filed their requisite processes in defence to the suit, although filed out of time.

He further hinted that he has an application for the extension of time to regularize their processes. The other parties were not opposed to the said application.

Addressing the court, counsel to Ecobank Plc, Ogunba (SAN) drew court’s attention to his client’s application for joinder.

However, the court was of the view that it wants the present parties to the suit to regularize their processes before hearing the said application.

Consequentially, the 2nd defendant’s counsel moved his application to regularize his process, which was granted by the court.

Thereafter, Ogunba (SAN) introduced his application for joinder, noting that the said process has been served on the Plaintiff.

Ogunba (SAN) also informed the court that he has a motion for leave to file a Further Affidavit in support of his application for joinder and in strict rebuttal to the Plaintiff’s counter-affidavit.

Parties were not opposed to the application; hence, the same was moved in terms by Ogunba SAN and the court granted the application as prayed.

Thereafter, Ogunba SAN informed the court that he intended to file an application for the judge to recuse itself from hearing the matter.

But, the plaintiff’s counsel, Bode Olanipekun (SAN) submitted that whereas the party seeking to join served its further affidavit on September 30, 2024 (last working day of September), contending that the issue of recusal was not raised in the application.

The court hinted that it expects the Plaintiff’s counsel to address the court on the issue of recusal, adding that the court will not proceed with the matter until the issue of recusal has been addressed and settled.

Conclusively, Justice Ayokunle Faji adjourned further proceedings to enable Ecobank’s lawyer to file his application for recusal.

Thereafter, Justice Faji adjourned further proceedings till October 21 for the hearing of pending applications.

The Plaintiff (Barbican Capital Limited) an affiliate company of Honeywell Group Limited had in suit no. FHC/L/CS/ 1172/24, claimed that over the years and at different times, it cumulatively acquired about 5,386,397,202 shares representing 15.1% of FBNH overall share listed on the Nigerian Stock Exchange, NSE.

Ecobank is challenging the action, arguing that the monies used by Barbican Capital Limited to purchase the FBN Holding shares are monies allegedly diverted from the sale of Honeywell Flour Mills shares to Flour Mills of Nigeria Plc, a move which (according to Ecobank) was taken by the Honeywell companies and their prime-mover (Dr. Oba Otudeko), to prevent paying their debts to Ecobank, notwithstanding the judgment of the Supreme Court affirming the said debt in favour of Ecobank.