The United Bank for Africa (UBA) has taken legal steps to be joined as a party in an ongoing suit at the Federal High Court in Lagos, as it challenges the controversial sale of the Ibadan Electricity Distribution Company (IBEDC).

UBA, through its counsel, Temilolu Adamolekun, filed a motion under Order 9 Rule 24 of the Federal High Court (Civil Procedure) Rules 2019, seeking the court?s order to join the litigation due to its vested financial interest in the disputed transaction.

The original suit, filed by 86 Gardens Limited and marked FHC/L/CS/418/2025, centers on an alleged breach of a Share Sales Agreement (SSA) involving Archlight Nigeria Limited (the 1st defendant), Abiodun Jamiu Owonikoko (SAN), practising under the name Synergy Attornies (2nd defendant), and the Corporate Affairs Commission (CAC) as the 3rd defendant.

The plaintiff, represented by Seni Adio (SAN), claims entitlement to 50% equity in the 1st defendant based on executed Share Transfer Forms and a Custody Agreement relating to the sale of IBEDC?s 60% stake by the Asset Management Corporation of Nigeria (AMCON).

UBA?s motion to join the suit stems from its role as a significant lender in a 2013 facility agreement, which provided $162.4 million to Integrated Energy Distribution and Marketing Company (IEDM) for acquiring IBEDC?s 60 percent stake.

According to UBA, this gives it a 21.54 percent stake in IEDM?s interest in IBEDC, a stake it claims is being jeopardized by AMCON?s unilateral and allegedly undervalued sale of the asset executed without consulting or informing the bank and other lenders.

In an affidavit deposed by Afamefuna Ogbonna, a UBA staff member, the bank contends that AMCON wrongfully appointed a receiver over IEDM and proceeded with a sale of IBEDC?s majority shares without the requisite consents.

UBA argues that its exclusion from the proceedings threatens its legal and financial interest, particularly as the suit seeks a declaration on the legitimacy of the share transfer and preferred bidder status?issues directly tied to the validity of the IBEDC sale.

During a resumed hearing, counsels for the various parties?Seni Adio (SAN) for the plaintiff, Babatunde Ogala (SAN) for the 1st defendant, Victor Okpara (SAN) for the 2nd defendant, and Temilolu Adamolekun for UBA?made submissions on the matter. Adio questioned UBA?s basis for intervention, arguing that the issue of ?preferred bidder? was no longer active.

However, Adamolekun countered that UBA?s interests had never been relinquished to AMCON, contrary to claims made by the 1st defendant?s counsel.

Adamolekun further asserted that UBA?s joinder application should take precedence over other pending applications, as the bank?s inclusion in the proceedings would ensure all relevant interests are heard before substantive matters are decided.

Justice Musa Kakaki, presiding over the matter, adjourned further proceedings to July 16, 2025, for hearing of the application for joinder and other pending applications. (The Guardian)

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