A Federal High Court in Lagos has ordered O & O Networks Limited, a special purpose vehicle owned by Ecobank Transnational Incorporated, to pay the sum of N22.5billion, being proceeds of the wrongful sale of shares in Airtel Networks Limited by Ecobank to Bharti Airtel, into the court’s account.

The decision is a fallout from the long-standing legal dispute between Mr. Oba Otudeko, a founding shareholder and former Chairman of Airtel Nigeria; his company, Broad Communications Limited; another founding shareholder of the company and O & O Networks now owned by Ecobank Transnational Incorporated.


Otudeko and Broad Communications Limited had instituted a legal action in 2006 challenging Delta State Government’s acquisition of O & O network’s shares in Airtel Networks (formerly Econet Wireless Nigeria).

From the facts of the case, Broad Communication’s main contention is that the transaction was unlawful and a breach of the Shareholders’ Agreement executed by the shareholders of Airtel Networks.

According to the said Shareholder’s Agreement, the shares should have been offered to the existing shareholders first as their right of “First Refusal” (pre-emptive right), as mandated by Clause 17.2.1 of the Shareholders’ Agreement, before being offered to Delta State Government

Following the institution of the suit, O & O Networks purportedly bought back the disputed shares from Delta State Government.

Beneficial ownership of the Airtel shares was subsequently transferred to Oceanic Bank, which is now owned by Ecobank Transnational Incorporated.

In 2015, following information received that the disputed shares were being offered for sale, Broad Communications published a “Buyer Beware” notice advising interested parties of the existing dispute on the shares.

On February 5, 2015, Justice John Tsoho of the Federal High Court also gave an order restraining all parties from dealing or tampering with the shares in the custody of Ecobank, and that all parties must maintain status quo until the final determination of the suit.

However, sometime in July 2018, and in disregard of the existing orders of the court, O & O Networks/Ecobank, entered into an arrangement with Bharti Airtel, the parent company of Airtel Networks, for the sale of the disputed shares to Bharti Airtel for the sum of N22.5billion.

Further findings revealed that as a condition of the sale transaction, Bharti Airtel, being previously aware of the dispute and court orders on these shares, extracted an indemnity from O & O Networks/Ecobank, the sellers of the shares, against any exposure to any liability.

In a ruling delivered on March 7, 2019, in respect of Broad Communication’s application challenging the recent sale of shares to Bharti Airtel, Justice Mojisola Olatoregun held that the order to maintain status quo earlier made by Justice Tsoho on February 5, 2015 still subsists and that O & O Networks should not have entered into the agreement with Bharti Airtel.

The judge stated that this was tantamount to disobedience of a subsisting court order and an affront to the court’s authority.

She submitted that any sale of the disputed shares was done at the seller’s risk.

Consequent upon this, the judge ordered O & O Networks, owned by Ecobank Transnational Incorporated, to pay the sum of N22.5billion being the proceeds of the unlawful sale into the custody of the Federal High Court within seven days from the date of the court ruling.

The suit was adjourned to May 28, 2019 for continuation of hearing.

https://www.akelicious.net/2019/03/court-orders-ecobank-to-forfeit-n225bn.html

Gud for them, they toy with people feelings anyhow. They still want to do this one anyhow.
Ecobank can do anyhow ehn

This kind of money they appeal it to the end ooo

Ecobank don enter one chance. This is a blow to their earnings

Dis one strong o

Chai, let me go and withdraw my money sharp sharp before they finish paying it and become bankrupt,


Sense will not kill me

this ecobank that they have no air conditioning on their banks.. next thing is to remove the revolving doors and put an ordinary door..

So people use Eco bank?

judgement was given by fed high court, so i see them appealing the case which will eventually end in supreme court.

This will definitely affects there bottomline.

Fraud

Corporate organization that should have behaved in an orderly manner, respect rules of law and never disobey court are the ones who misbehave the most, sometime I feel something is wrong with us as people because we always think politicians are the worst but in reality, people in the corporate organization, market women, lecturers, pastors, taxi drivers, landlord, caretaker, househelp, mechanic etc all behave in a wicked and crooked ways, Taking advantage of their position to cheat us.

Pls I can't log in to nairaland if I log out on this phone am tires of opening different account pls help me resolve this problem moderators

EcoBank wey dey sick already, this go just kill am finally.

jideflash:
Ecobank don enter one chance. This is a blow to their earnings

Appeal court

Breach of procedure in sales of shares.

alphaNomega:


Appeal court

But the money must be in the custody of the court while you appeal.The first judgement must be obeyed first.

yesterday the ecobank in my area said they cant work , because their gen is faulty , i wanted to cry because i used the last 150naira to blow bike to the bank, i had to trek home with sweat all over my white shirt

seunfly:
Corporate organization that should have behaved in an orderly manner, respect rules of law and never disobey court are the ones who misbehave the most, sometime I feel something is wrong with us as people because we always think politicians are the worst but in reality, people in the corporate organization, market women, lecturers, pastors, taxi drivers, landlord, caretaker, househelp, mechanic etc all behave in a wicked and crocked ways, Taking advantage of their position to cheat us.

Something is wrong with you.

This is a serious matter o

Xisnin:

Something is wrong with you.

Nothing is wrong with him. Please, mention what he said that is out of order.
22.5bn na beans?
The painful thing is that the people who brought the bank into this mess would not be held accountable.

Hmmmm, corporate world and figure sha

logan2:
yesterday the ecobank in my area said they cant work , because their gen is faulty , i wanted to cry because i used the last 150naira to blow bike to the bank, i had to trek home with sweat all over my white shirt

Lol!! I v never heard of such b4 ooo even when I was serving in the interior of interior in bauch state of gamawa local government in gololo village, bank in the closest village no dey disappoint oooo even if na inverter, they must work.

Chuks9000:

Nothing is wrong with him. Please, mention what he said that is out of order.
22.5bn na beans?
The painful thing is that the people who brought the bank into this mess would not be held accountable.

Lol.... You see me answer the guy, he can continue in his self denial, we Nigerians are perfect in self denial syndrome, we lied to our selves that is why we don't see it as a big deal to lie to the next person.

coolestchris:
this ecobank that they have no air conditioning on their banks.. next thing is to remove the revolving doors and put an ordinary door..

I want to put my two hands on my head but LWKMD

Is my money still safe?

seunfly:

Lol!! I v never heard of such b4 ooo even when I was serving in the interior of interior in bauch state of gamawa local government in gololo village, bank in the closest village no dey disappoint oooo even if na inverter, they must work.

such is life here ,what can we do