Oba Otudeko
SEC investigates Otudeko’s FBN acquisition. According to The PUNCH, the Securities and Exchange Commission is currently examining the acquisition of 4.7 billion shares of FBN Holdings by a former Chairman of the bank, Oba Otudeko.
A source within the commission, who requested anonymity, confirmed to our correspondent that an investigation into the contentious sale, which was published on the Nigerian Exchange Limited website on Friday, July 7, was now underway.
“I am aware the Commission is looking into the transaction,” the person said. A report has already been prepared and given to management.”
Meanwhile, some capital market experts have said the acquisition of about 4.7 billion shares of FBN Holdings by Otudeko, followed due capital market stipulations.
They reacted to the recent twist in the issue, which prompted Ecobank to send a petition to FBN Holdings, requesting that Otudeko’s acquisition of around 14% of the group’s shares, which would make him the majority shareholder, be rejected.
According to experts who contacted with The PUNCH, the easiest approach to resolve the dispute between Eco Bank and Otudeko would be through a mutually accepted arbitration process.
While reacting to the course of events, the National Coordinator of the Progressive Shareholders Association of Nigeria, Boniface Okezie, stated that there was nothing legally preventing Otudeko from investing in any company he desired.
“Otudeko invested his money where he wanted to invest it,” he explained. Nobody can tell him where or how he should invest his money.”
He also chastised Ecobank for objecting to the purchase of Honeywell Flour, arguing that the company was free to acquire any commercial entity it wanted regardless of any existing conflicts.
Rather than attempting to prevent the sale of the company to Flour Mills, he believes Ecobank should have started receivership procedures to take over Honeywell Flour.
He advised the involved parties to get back to the negotiation table and resolve the conflict through dialogue.
Modupe Thani, a corporate communications representative of Flour Mills of Nigeria, could not be reached for comment at the time of posting this article.