Barbican vs FBN: N5.4bn Share Dispute Heads to Court Oct 21

A Federal High Court in Lagos has fixed October 21, 2024, for the hearing of pending applications in a suit filed by an investment firm, Barbican Capital Limited against First Bank of Nigeria Holdings Plc over the alleged disputes of its N5.4bn shares.

Justice Ayokunle Faji, on Wednesday, adjourned the suit following an application from Ecobank Plc’s counsel, Kunle Ogunba (SAN), seeking to join the case.

At the proceedings, counsel to Barbican Capital Limited, Bode Olanipekun (SAN), announced his appearance for the plaintiff, while Babajide Koku (SAN) appeared for FBN Holdings Plc, the first defendant.

The Central Bank of Nigeria was represented by Hakeem O. Afolabi (SAN), who had been joined as a party, and Kunle Ogunba (SAN) represented Ecobank Nigeria Limited, which is seeking to be joined in the suit.

During the hearing of the case, Afolabi (SAN) informed the court that at the last adjourned date, the court joined the Central Bank of Nigeria as a party to the suit.

He said,” We have filed our processes in defence of the suit, although slightly out of time, and I have an application for an extension of time to regularise them.”

Meanwhile, the other parties in the suit did not oppose his application, and the court granted it.

Ecobank’s counsel, Ogunba (SAN), notified the court of his client’s application to join the case.

However, the judge indicated that the court wanted the existing parties to regularise their processes before hearing the joinder application.

After the 2nd defendant’s counsel moved to regularise his process, which the court approved, Ogunba introduced his application for joinder and confirmed that the process had been served on the plaintiff.

“My client also seeks leave to file a further affidavit in strict rebuttal to the plaintiff’s counter-affidavit,” Ogunba added.

As there were no objections, the court granted the application.

Ogunba then stated, “We intend to file an application for your lordship to recuse yourself from this matter.”

In response, the plaintiff’s counsel, Bode Olanipekun (SAN), argued that the recusal issue had not been raised in the joinder application, which was served on the plaintiff on September 30, 2024.

Justice Faji hinted that the plaintiff’s counsel would need to address the court on the recusal issue before the case could proceed.

The judge said, “We will not move forward until the matter of recusal is settled.”

The court granted Ogunba time to file his application for the judge’s recusal.

Consequently, Justice Faji adjourned the case until October 21, 2024, for the hearing of the pending applications.

Barbican Capital Limited, an affiliate of Honeywell Group Limited, had filed the suit no. FHC/L/CS/1172/24, claiming that over the years, it had cumulatively acquired about 5,386,397,202 shares, representing 15.1 per cent of FBN Holdings’ overall shares listed on the Nigerian Stock Exchange.

Ecobank has opposed this action, arguing that the funds used by Barbican Capital to purchase the shares were allegedly diverted from the sale of Honeywell Flour Mills shares to Flour Mills of Nigeria Plc.

According to Ecobank, this move was made by the Honeywell companies and their chairman, Dr Oba Otudeko, to evade payment of debts owed to Ecobank, despite a Supreme Court ruling in favour of the bank.