Barbican Capital Ltd has filed a lawsuit against First Bank Nigeria Holdings (FBNH) in the Federal High Court in Lagos, alleging unauthorized alteration of its 5.4 billion shares by the bank.
Thank you for reading this post, don't forget to subscribe!According to the suit filed under number FHC/L/CS/1172/24, Barbican Capital, represented by Senior Advocate of Nigeria Bode Olanipekun, claims it has accumulated approximately 5,386,397,202 shares over the years, representing 15.1% of FBNH’s total shares listed on the Nigerian Stock Exchange (NSE).
The investment firm asserts that these shares were properly recorded by FBNH’s appointed registrars, Meristem Registrar and Probate Service Ltd, and acknowledged in the Central Securities Clearing System (CSCS). Additionally, FBNH’s Unaudited Consolidated Financial Statement for the year ending December 31, 2023, recognized Barbican’s substantial shareholding, representing 13.61% of the bank’s total shares.
Barbican Capital further confirmed receiving dividend payments from FBNH for its 5.4 billion shares between November and December 2023 for the fiscal year ending December 31, 2022. However, in May 2024, the firm was surprised when FBNH’s publication on ‘Substantial Interest in Shares’ showed a significant reduction in its shares to 3,110,400,619, representing only 8.6% of the bank’s total shares.
The company maintains that it has not divested any shares and disputes the figures reported by FBNH in its Unaudited Financial Statement for the year ending March 31, 2024. According to Barbican, the CSCS statement from May 2024 still reflects ownership of 5.4 billion shares.
Barbican Capital attempted to address the issue with FBNH but was met with the bank’s attempt to shift responsibility to the Central Bank of Nigeria (CBN).
The investment firm is seeking multiple declarations from the court, including a confirmation of its shareholding as recorded in the CSCS and an order to prevent FBNH from altering or misrepresenting its shares. Barbican is also asking for an injunction to stop any further reduction or misstatement of its shareholding by FBNH.
During a recent hearing on July 19, 2024, before Justice A.O Faji, FBNH’s counsel, Buchi Obulue, filed an application to join the CBN as a party in the suit, which was granted. The case has been adjourned until October 2, 2024, for hearing, with the court giving the CBN eight days to submit its legal documents.
Naija247news reports that this legal battle highlights ongoing concerns over transparency and accuracy in Nigeria’s financial markets.
