United Bank for Africa Plc (UBA) has filed an application at the Federal High Court in Lagos to be added as a defendant in an ongoing legal dispute over the alleged sale of the Ibadan Electricity Distribution Company (IBEDC).
The suit, marked FHC/L/CS/418/2025, was initiated by 86 Gardens Limited against Archlight Nigeria Limited, Abiodun Jamiu Owonikoko (SAN) of Synergy Attorneys, and the Corporate Affairs Commission (CAC). The plaintiff, represented by Senior Advocate of Nigeria, Mr. Seni Adio, is requesting declaratory and injunctive reliefs centered on enforcing a Share Sales Agreement and a Tripartite Custody Agreement related to the acquisition of 60% equity in IBEDC from the Asset Management Corporation of Nigeria (AMCON).
According to 86 Gardens, Archlight Nigeria failed to transfer 50% of its equity as agreed, while Owonikoko, acting as custodian, did not release or file critical share transfer documents. The plaintiff also alleges a conflict of interest and is seeking specific performance of the agreements, recognition by the CAC, and N100 million in general damages.
At a hearing held Friday, UBA’s counsel, Temilolu Adamolekun, argued for the bank’s inclusion in the case, describing UBA as a key stakeholder. He noted the bank was one of the financiers of the 2013 acquisition of IBEDC shares by Integrated Energy Distribution and Marketing Company Limited (IEDM).
In its motion dated May 15, 2025, UBA said it holds a 21.54% interest in IEDM’s 60% stake in IBEDC, based on a $162.4 million loan facility co-financed by several banks.
However, Adio expressed skepticism, questioning UBA’s interest in the suit, especially as the matter of the “preferred bidder” was no longer relevant.
First defendant’s counsel, Babatunde Ogala (SAN), informed the court that they had filed all necessary responses and mentioned that another party, a lender to the original mortgagor whose debt had been acquired by AMCON had also filed a motion to join the case.
Victor Okpara (SAN), counsel for the second defendant, confirmed they had filed a conditional appearance and motions to regularize their filings, along with counter-affidavits opposing the originating summons and interim injunction. They acknowledged receipt of UBA’s motion and intended to respond accordingly.
Adamolekun clarified that the notion UBA had sold its interest to AMCON was mistaken. He also requested that the joinder application be prioritized so UBA could respond to all pending applications if admitted as a party to the case.
Ogala, however, argued that a notice of preliminary objection should take precedence. Adamolekun disagreed, stating that in certain instances, an application for joinder should be heard first.
Justice Musa Kakaki adjourned the matter to July 16, 2025, for further proceedings.
In an affidavit supporting UBA’s motion, Afamefuna Ogbonna, a bank employee, stated that the plaintiff’s claims revolve around a 50% equity stake already transferred to it, subject to the first defendant being named preferred bidder by AMCON. He emphasized that UBA was one of the original lenders of the $162.4 million facility for IEDM’s acquisition of the IBEDC stake.
UBA’s affidavit further explained that Polaris Bank, under AMCON’s management, had initially acted as the facility agent. However, AMCON later took over the role without formal communication, appointing a receiver and nominee to oversee IEDM.
UBA expressed concern over being kept in the dark regarding IEDM’s management and accused AMCON of selling the company’s stake unilaterally without consulting the other lenders for a price it claims is less than 20% of the asset’s actual value.
UBA concluded that it was opposed to the sale, asserting it occurred without the consent of the bank or other secured lenders and was done at a gross undervaluation.
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