Court Restrains ANL From Selling Off IBEDC Shares

Justice Musa Kakaki of the Federal High Court Lagos has Restrained Archlight Nigeria Limited (ANL) from transferring to any party or a third party its 50 percent equity shareholding in Ibadan Electricity Distribution Company Limited (IBEDC).

Justice Kakaki granted an interim injunction after listening to an ex parte motion filed by 86 Gardens Limited, which claims to own the shares.

The judge ruled that the interim order would remain in effect until the hearing and determination of the accompanying motion for an interlocutory injunction scheduled for May 16.

The other defendants in the suit are A. J. Owonikoko (SAN), who practices under the name and style of Synergy Attorneys and the Corporate Affairs Commission (CAC).

Specifically, Justice Kakaki issued an interim injunction preventing Archlight Nigeria Limited, its agents, directors, officers, associates, or nominees from transferring the 50 per cent equity shareholding in the company assigned to 86 Gardens Limited. This is contingent only upon 86 Gardens Limited emerging as the preferred bidder from the Asset Management Corporation of Nigeria (AMCON) concerning the sale of 60 per cent of the ownership interest in IBEDC, pending the hearing and determination of the motion for an interlocutory injunction.

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In the originating summons brought under Order 3 Rule 6 of the Federal High Court (Civil Procedure) Rules 2019, the plaintiff, 86 Gardens Limited, is seeking the court’s determination on the following matters:

“Whether the first defendant breached the Share Sales Agreement (SSA) between the first defendant and the plaintiff, dated July 2024, by failing or refusing to transfer 50 percent of the equity and shareholding in the first defendant to the plaintiff as established in the SSA.

“Whether the second defendant breached the Tripartite Custody Agreement (Custody Agreement or CA) among the plaintiff, the first defendant, and the second defendant by failing or refusing to release the Share Transfer Forms and other accompanying documents already signed by the plaintiff and the first defendant (collectively, the “Security Documents”) to the plaintiff.

The plaintiff stated that if the answers to the questions for determination are in the affirmative, they urge the court to grant the following orders and reliefs:

“An order directing the third Defendant to accept from the first Defendant and/or second Defendant the Share Transfer Forms and other accompanying documents that have been signed by the Plaintiff and 1st Defendant, transferring 50 percent of the equity and shareholding in the 1st Defendant to the Plaintiff as stated in the SSA. (1999) 9 NWLR (Pt. 617) 116.

“An order of general damages against the 1st Defendant in the amount of N100 million.”