UBA Opposes Alleged Unauthorised Sale of IBEDC Stake, Seeks to Join Lawsuit

Wale Igbintade

The United Bank for Africa (UBA) has approached the Federal High Court in Lagos to join an ongoing lawsuit filed by 86 Gardens Limited against Archlight Nigeria Limited and others, over the alleged unauthorised transfer of shares in the Ibadan Electricity Distribution Company (IBEDC).

Justice Musa Kakaki has scheduled July 16, 2025, to hear UBA’s joinder application.

The second and third defendants in the suit are Abiodun J. Owonikoko (SAN), representing Synergy Attorneys, and the Corporate Affairs Commission (CAC), respectively.

At the proceedings yesterday, Seni Adio, SAN, appeared for the plaintiff. 

Babatunde Ogala, SAN, and Victor Okpara represented the first and second defendants, respectively. Temilolu Adamolekun, alongside Temple Anyanwu, appeared for the proposed intervener, UBA.

Adio informed the court that the CAC had been duly served but failed to appear. 

He acknowledged receiving preliminary objections and motions from the first and second defendants, which the plaintiff intends to address. 

He also questioned UBA’s interest in the matter, arguing that the issue of the “preferred bidder” in the IBEDC transaction had already been settled.

Ogala confirmed receipt of all filings, including the joinder motion filed by a lender to the original mortgagor, whose debt was later assumed by AMCON. 

Okpara stated that the second defendant had filed a conditional appearance and motions to regularise its processes and had received the proposed intervener’s documents.

Adamolekun, representing UBA, argued that the joinder application is crucial to protect the bank’s interests. 

He denied claims that UBA had sold its stake to AMCON and insisted that the joinder should take precedence over other pending motions. 

Counsel to the defendants, however, maintained that jurisdictional issues must be addressed first.

Adamolekun countered that joinder motions can, in some cases, take priority.

Justice Kakaki adjourned the matter to July 16 for hearing of all pending applications.

In a supporting affidavit deposed by Afamefuna Ogbonna, UBA explained that the plaintiff’s suit concerns a 50 per cent equity stake in the first defendant, allegedly transferred under a Custody Agreement, Share Sale Agreement, and other related documents. 

The transfer was said to be contingent on the first defendant being declared the preferred bidder by AMCON in its sale of a 60 per cent stake in IBEDC.

UBA disclosed that it is one of the lenders that provided a $162.4 million facility to Integrated Energy Distribution & Marketing Company Limited (IEDM) to acquire the 60 per cent stake in IBEDC, pursuant to a Facility Agreement dated August 16, 2013. 

UBA’s interest is equivalent to a 21.5 per cent share of IEDM’s stake.

According to the bank, Polaris Bank was initially appointed as Facility Agent under the agreement, but AMCON later assumed that role without formal notification. AMCON then appointed a receiver over IEDM and allegedly sold IBEDC’s stake without consulting other secured lenders.

UBA contends the sale was conducted unilaterally, below market value, and without the consent of other lenders. It has issued a statutory pre-action notice challenging the validity of the transaction.

The bank stated it would suffer substantial hardship if excluded from the proceedings, as any court ruling validating the sale or recognising the first defendant as the preferred bidder could adversely affect its legal and financial interests.

UBA concluded that its joinder is necessary for the court to fully and fairly adjudicate the dispute, as the issues of bidding and shareholding in IBEDC are central to the plaintiff’s claims.