SEC probes Otudeko’s FBN share acquisition
The Securities and Exchange Commission (SEC) has begun investigating the acquisition of 4.77 billion shares of FBN Holdings by Chairman of Honeywell Group, Oba Otudeko, according to a well-placed source
The source, who pleaded anonymity, said that a probe of the contentious deal that was published on the website of the Nigerian Exchange Limited of Friday, July 7 was currently being probed.
The source said, “I am aware the Commission is looking into the transaction. A report has been made already and forwarded to the management.”
“Presently, the SEC has not taken any position on the matter as it requires a careful investigation,” the official, who craved anonymity, said.
Recall that Ecobank wrote a letter to FBN Holdings, asking the bank to reject the Otudeko-led Honeywell’s bid to become the company’s largest shareholder. Ecobank further claimed that Honeywell owes it a debt of N13.5 billion, adding that the debt was affirmed by the supreme court on January 27, 2023
The disclosure comes amid an ongoing dispute over a N13.5 billion debt between Honeywell Group and Ecobank.
Recently, Honeywell Group, through its affiliate, Barbican Capital Limited, acquired a total of 4,770,269,843 units of FBN Holdings’ shares.
The purchase brought the stake held by the company in the premier bank to 13.3 percent, making it the majority shareholder.
However, few days after the purchase, Ecobank wrote a letter to FBN Holdings, asking the bank to reject the Otudeko-led Honeywell’s bid to become the company’s largest shareholder.
Ecobank claimed that Honeywell owes it a debt of N13.5 billion, a claim the company has denied.