The Securities and Exchange Commission (SEC) says it is investigating the acquisition of 4.77 billion shares of FBN Holdings by Oba Otudeko, chairman of Honeywell Group.
A top official of the commission confirmed the development 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, a 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.
