Ecobank subsidiary denies court order on shares sale

O&O Networks Limited, Special Purpose Vehicle (SPV) owned by the Ecobank Group says contrary to certain news reports, there is no forfeiture order of the Federal High Court of Nigeria in its proceedings that is directed against Ecobank Transnational Incorporate (ETI) or Ecobank Nigeria Limited.O&O Networks Limited is defending long-standing proceedings in the Federal High Court relating to its ownership of shares in Airtel Networks Limited that were once owned by it.The company which is a special purpose vehicle previously owned by Oceanic Bank, formed part of Ecobank Transnational Incorporateds (ETI) in 2011 after the acquisition of Oceanic Bank. Legal proceedings were first initiated against O&O Networks Ltd in December 2006 by Broad Communications Ltd (plaintiff), in the Federal High Court of Nigeria.A statement released by O&O Networks, pointed out that there is no forfeiture order of the Federal High Court of Nigeria in these proceedings that is directed against ETI or Ecobank Nigeria Limited.According to the statement, there have been no material legal developments in the plaintiffs substantive claim for monetary compensation since 2017, though a trial date on the substantive merits was recently fixed for May 28, 2019.The statement reads: Contrary to certain press reports, there is no forfeiture order of the Federal High Court of Nigeria in these proceedings that is directed against ETI or Ecobank Nigeria Limited, and neither ETI nor Ecobank Nigeria Limited has made or is required by law to make any payment to the Federal High Court of Nigeria in relation to this long-standing litigation. There have been no material legal developments in the plaintiffs substantive claim for monetary compensation since 2017.In 2006, the plaintiffs claim was grounded on an alleged right of first refusal over shares in Airtel Networks Limited that O&O Networks owned. The plaintiff claimed ownership of the Airtel shares based on its right of first refusal. In 2017, the plaintiff amended its claim to seek monetary compensation of dollar equivalent of N10 billion (approximately $28 million) in place of its claim of ownership of the Airtel share. Since the matter was filed in 2006, it has not proceeded to trial on the substantive merits of the claim to date though a trial date on the substantive merits was recently fixed for May 28, 2019In August 2018, O & O Networks sold its shares in Airtel Networks Limited for N22.5 billion (approximately $62.5 million) with the permission of the Federal High Court on 7 June 2018 and subsequently in September 2018, the plaintiff filed an interlocutory application requesting the Federal High Court of Nigeria to grant an order directing O&O Networks to place N22.5 billion (approximately $62 million)the entire proceeds of the sale of the Airtel shares and an amount which is significantly in excess of the plaintiffs total monetary claiminto an escrow account in the name of the Chief
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