INVESTORS DEMAND RESOLUTION OF BARBICAN CAPITAL VS. FBN HOLDINGS LEGAL TUSSLE
Key Points:
1. Legal Dispute:
- Background: Barbican Capital Limited, linked to billionaire businessman Oba Otudeko, has initiated legal action against FBN Holdings.
- Allegation: Barbican Capital claims that FBN Holdings understated its shareholding. The firm alleges that FBN Holdings altered its reported shareholding of 5.4 billion shares.
2. Discrepancies in Shareholding:
- Unaudited Statements: Barbican Capital's shareholding was reported as 4,886,062,743 shares (13.61%) in unaudited financial statements for the year ended December 31, 2023.
- Audited Results: The audited results showed a reduced shareholding of 3,110,400,619 shares (8.67%), with a note from the Central Bank of Nigeria.
- Quarterly Reports: The same 3,110,400,619 shares (8.67%) were recorded in the first and second quarter financial statements for the same year.
3. Barbican's Claims:
- Acquisition of Shares: Barbican Capital claims it has acquired approximately 5,386,397,202 shares, representing 15.1% of FBN Holdings' total shares.
- CSCS Report: According to a report from the Central Securities Clearing System (CSCS) dated May 23, 2024, Barbican owned 5,386,397,202 shares (15.01%) and 4,886,062,743 shares (13.61%) as of December 2023.
- Dividend Payments: The firm received dividends for all 5,386,397,202 shares in late 2023 for the financial year ended December 31, 2022, and asserts that it did not divest any shares.
4. Investor Reactions:
- Call for Resolution: Minority investors have urged a resolution of the issue without prolonged court involvement.
- Comments:
- Boniface Okezie (Progressives Shareholders Association of Nigeria): Criticized the escalation to court and suggested resolving the issue with the CSCS and registrar.
- Taiwo Oderinde (Proactive Shareholders Association of Nigeria): Emphasized that the matter should have been resolved through regulators rather than courts and stressed the importance of resolving the dispute for the company's future.
5. FBN Holdings' Plans:
- Capital Raising: FBN Holdings plans to raise approximately ₦350 billion through various methods, including public offerings or private placements, as part of its strategic goals.
6. Previous Legal Issues:
- 2023 AGM Dispute: FBN Holdings faced a legal challenge in 2023 concerning its annual general meeting, which led to a temporary court order barring the AGM. The AGM was eventually held virtually after protests and regulatory intervention.
7. Current Court Proceedings:
- Recent Hearing: In the latest court session on July 19, 2024, FBN Holdings' counsel requested to join the Central Bank of Nigeria in the suit. The court granted this request and adjourned the matter until October 2, 2024, for further hearings.
Key Points:
1. Legal Dispute:
- Background: Barbican Capital Limited, linked to billionaire businessman Oba Otudeko, has initiated legal action against FBN Holdings.
- Allegation: Barbican Capital claims that FBN Holdings understated its shareholding. The firm alleges that FBN Holdings altered its reported shareholding of 5.4 billion shares.
2. Discrepancies in Shareholding:
- Unaudited Statements: Barbican Capital's shareholding was reported as 4,886,062,743 shares (13.61%) in unaudited financial statements for the year ended December 31, 2023.
- Audited Results: The audited results showed a reduced shareholding of 3,110,400,619 shares (8.67%), with a note from the Central Bank of Nigeria.
- Quarterly Reports: The same 3,110,400,619 shares (8.67%) were recorded in the first and second quarter financial statements for the same year.
3. Barbican's Claims:
- Acquisition of Shares: Barbican Capital claims it has acquired approximately 5,386,397,202 shares, representing 15.1% of FBN Holdings' total shares.
- CSCS Report: According to a report from the Central Securities Clearing System (CSCS) dated May 23, 2024, Barbican owned 5,386,397,202 shares (15.01%) and 4,886,062,743 shares (13.61%) as of December 2023.
- Dividend Payments: The firm received dividends for all 5,386,397,202 shares in late 2023 for the financial year ended December 31, 2022, and asserts that it did not divest any shares.
4. Investor Reactions:
- Call for Resolution: Minority investors have urged a resolution of the issue without prolonged court involvement.
- Comments:
- Boniface Okezie (Progressives Shareholders Association of Nigeria): Criticized the escalation to court and suggested resolving the issue with the CSCS and registrar.
- Taiwo Oderinde (Proactive Shareholders Association of Nigeria): Emphasized that the matter should have been resolved through regulators rather than courts and stressed the importance of resolving the dispute for the company's future.
5. FBN Holdings' Plans:
- Capital Raising: FBN Holdings plans to raise approximately ₦350 billion through various methods, including public offerings or private placements, as part of its strategic goals.
6. Previous Legal Issues:
- 2023 AGM Dispute: FBN Holdings faced a legal challenge in 2023 concerning its annual general meeting, which led to a temporary court order barring the AGM. The AGM was eventually held virtually after protests and regulatory intervention.
7. Current Court Proceedings:
- Recent Hearing: In the latest court session on July 19, 2024, FBN Holdings' counsel requested to join the Central Bank of Nigeria in the suit. The court granted this request and adjourned the matter until October 2, 2024, for further hearings.