The Securities and Exchange Commission (SEC) says it is investigating the acquisition of 4.77 billion shares of FBNHoldings by Oba Otudeko, chairman of Honeywell Group.
A top official of the commission confirmed the development to TheCable on Wednesday.
The official said the capital market regulator has commenced a probe into the process of share acquisition by the Otudeko-led Honeywell Group.
“Presently, the SEC has not taken any position on the matter as it requires a careful investigation,” the official, who craved anonymity, said.
The disclosure comes amid an ongoing dispute over a N13.5 billion debt between Honeywell Group and Ecobank.
Recently, Honeywell Group, through its affiliate, Barbican Capital Limited, acquired a total of 4,770,269,843 units of FBN Holdings’ shares.
The purchase brought the stake held by the company in the premier bank to 13.3 percent, making it the majority shareholder.
However, few days after the purchase, Ecobank wrote a letter to FBN Holdings, asking the bank to reject the Otudeko-led Honeywell’s bid to become the company’s largest shareholder.
Ecobank claimed that Honeywell owes it a debt of N13.5 billion — a claim the company has denied.
