SEC ‘gets’ complaint on Otudeko FBN shares, begins probe
The Securities and Exchange Council has reportedly received a complaint regarding the surprised acquisition of 4.7 billion shares of FBN Holdings by businessman Oba Otudeko.
By the acquisition, Otudeko, who owns Honeywell Limited, automatically becomes the largest shareholder in the bank.
A source in SEC confirmed the probe, according to Punch.
“I am aware the Commission is looking into the transaction. A report has been made already and forwarded to the management,” the source stated.
Otudeko’s acquiring of the FBN shares – a bank in which he had once been forced to step down as its chairman – has rekindle his disagreement with Ecobank Plc. The investor and business entities associated with him owe Ecobank N13.5billion. In responding to the news of the acquisition, Ecobank urged FBN to reject the share purchase.
However, stakeholders believe that Otudeko committed no infractions concerning the share acquisition.
Boniface Okezie, the national coordinator, allegedly said that “Otudeko invested his money where he wanted to invest it” and that “nobody can dictate to him where or how to invest his money.” To him, Ecobank ought to have initiate receivership of Honeywell Flour, instead of opposing its sale to another flour processing company, Flour Mill. On his part,
Sunny Nwosu, the chairman, Independent Shareholders Association of Nigeria, urged both Ecobank and Otudeko to return to negotiation on the way forward.
