Court Yet To Decide Our Indebtedness To Ecobank—Honeywell

The controversy surrounding the sale of the controlling stake of Honeywell Flour Mills Plc by the Group and First Bank Holdings is raising dust as the company has accused Ecobank Plc of sabotaging the transaction that it said will benefit the Nigerian economy.

The agro-allied company is also claiming that no Nigerian court has adjudged Honeywell as indebted to Ecobank.

Honeywell said, “It is pertinent to set the record straight that there is no winding up petition currently pending or live against HFMP in any Court in Nigeria.

“There is also no pending court order restraining trading in the shares of HFMP or inhibiting HFMP or its owners from dealing in its assets.

“The issue as to whether HFMP is indebted to Ecobank is still before the courts and the final decision remains the exclusive preserves of the court.”

The case stems from the announcement of the sale of Honeywell to Flour Mills for N80bn on November 22.

Less than 24 hours after the transaction, the pan-African bank warned against the acquisition of the shares of Honeywell Flour Mills Plc.

Flour Mills said it acquired 76.75 per cent of the shares held by Honeywell from Honeywell Group Ltd and First Bank Holdings Group.

But Ecobank through its legal team Kunle Ogunba & Associates warned buyers to beware of accumulating the Honeywell shares.

Ecobank alleged that Honeywell had failed to liquidate a N4.1bn loan the founder and the Chairman of Honeywell Group, Dr Oba Otudeko, took from the bank.

“Please be further informed about the assets of both Honeywell Group Limited and Honeywell Flour Mills Plc are the subject of the winding-up action and thus based on the doctrine of “lis-pendens” (in addition to the provisions of CAMA supplied above) you are advised to refrain from dealing with the subject asset which forms part of the subject matter of litigation,” Ecobank.

But Honeywell in response Honeywell claimed that the assertions by the bank ‘lack merit.’

The newly acquired company added that they “were written in bad faith and are deliberate attempt to undermine a transaction that will result in substantial benefits to the Nigerian economy.

“All stake holders are hereby assured that management of Honeywell Flour Mills Plc will continue to act in the best interest of all concerned and work diligently to preserve value for all its stakeholders.”

The Acquiring company, Flour Mills has also said that the acquisition followed necessary due diligence.

Flour Mills noted that the transaction was not in breach of any subsisting Order of Court in matters relating to any third party.