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The Securities and Exchange Commission (SEC) is currently conducting an investigation into the acquisition of 4.7 billion shares of FBN Holdings by Oba Otudeko, the former Chairman of the bank, according to sources. The probe follows the publication of the contentious deal on the Nigerian Exchange Limited website on July 7th.
An anonymous source within the commission confirmed that a report has been submitted to the management, signaling ongoing scrutiny of the transaction. Meanwhile, experts in the capital market have stated that Otudeko’s acquisition of the shares adhered to the necessary capital market regulations.
In response to the recent development, which saw Ecobank petitioning FBN Holdings to reject Otudeko’s acquisition that would make him the major shareholder with a 14% stake, market experts believe that a mutually acceptable arbitration process would be the best approach to resolving the conflict.
Boniface Okezie, the National Coordinator of the Progressive Shareholders Association of Nigeria, emphasized that Otudeko has the right to invest his money wherever he chooses and that no one can dictate his investment decisions. He also criticized Ecobank for objecting to the purchase of Honeywell Flour, asserting that companies have the freedom to acquire any business entity, even in the presence of existing conflicts.
Similarly, Sir Sunny Nwosu, the Chairman Emeritus of the Independent Shareholders Association of Nigeria, characterized the capital market as a free market where individuals can invest in any company of their choice. He advised the involved parties to engage in dialogue and seek resolution through negotiation.
At the time of reporting, no comments were available from Flour Mills of Nigeria’s corporate communications personnel, Modupe Thani.
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