First Bank Nigeria Holdings Plc has confirmed that it is in court with Oba Otudeko’s Barbican Capital Limited after Barbican received notification that showed that FBN Holdings sought to reduce its 5,386,397,202 total shareholding in the bank by 40 per cent.
The bank said on Tuesday in a statement that it will defend its position in court.
The misunderstanding began when FBN Holdings in its December 2023 audited accounts released in May, 2024 slashed Barbican’s shareholding in the bank to 3.1 billion (3,110,400,619) or 8.67 per cent of the lender’s total shares from the earlier reported 4.8 billion (4,886,062,743).
Prior to the report, Barbican controlled 13.61 per cent of the shares based on the December 2023 unaudited accounts released in February.
FBNH attached to the audited accounts a note that said the 3.1 billion shares represent the total that had been “verified” by the Central Bank of Nigeria.
But the aggrieved Barbican Capital filed a lawsuit against FBN Holdings, and attached a statement from the Central Securities Clearing System (CSCS) as evidence of its total shares ownership.
Based on the Barbican statement from CSCS as of May 23, 2024, the company owned 5,386,397,202 shares (15.01 per cent) while It held 4.8 billion (4,886,062,743) shares or 13.61 percent as at December 2023.
Reacting On Tuesday, FBNH said it was aware of the matter, adding that it has engaged its solicitor to defend the bank’s position.
It said, “The attention of FBN Holdings Plc (the Company) has been drawn to recent media reports regarding the suit filed by Barbican Capital Limited (the Plaintiff). The Company is aware of this suit, and we have duly instructed our Solicitors to defend the interest of the Company accordingly.
“The matter is presently in a Court of law, and it will be subjudice to join issues with the Plaintiff outside the Court. We confirm that the necessary papers have been filed and by virtue of a Third-Party Notice, the Central Bank of Nigeria (CBN) has been joined as a Party to the suit for effective determination of questions and issues raised by the Plaintiff.
“The matter is presently adjourned to October 2, 2024, for hearing of the suit. We assure our numerous stakeholders of the Company’s commitment to the highest levels of corporate governance standards in defending the matter.”