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Ecobank To Flour Mills: Don’t Do Business With Honeywell

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Ecobank To Flour Mills: Don't Do Business With Honeywell

Ecobank Nigeria Limited has warned Flour Mills of Nigeria Plc, against the proposed acquisition of equity stake in Honeywell Flour Mills Plc.

According to the financial institution, purchasing an equity stake in Honeywell Flour Mills Plc is too risky considering the fact that Honeywell Group Limited, the parent firm, had not been paying up its loans.

Newsrand understands that Ecobank and Honeywell have a legal battle ongoing over a N3.5 billion debt the former alleged that the latter owed it.

However, following the disclosure that the establishment of Honeywell Flour Mills Plc (HFMP), a portfolio company of Honeywell Group Limited, would soon be concluded, Ecobank advised Flour Mills to not consider doing business with the former.

In a statement signed by solicitors to Ecobank, Kunle Ogunba and Associates, and addressed to the Managing Director of Flour Mills of Nigeria, the financial institution cautioned the public and corporate bodies on the “danger inherent in dealing in any shares of the company.”

Ecobank said it had advanced several loan facilities, which included working capital disbursements, to Honeywell Flour Mills.

The bank said due to the failure of the company to liquidate the said loan facilities, it was constrained to commence winding up proceedings against Honeywell Group Limited at the Federal High Court, Lagos in suit no: FHC/L/CP/1571/2015.

The statement read: “However, while the said action was dismissed at the Federal High Court and the Court of Appeal, it is pertinent to state that an appeal with appeal no: SC/700/2019 has been filed challenging the said decision at the Supreme Court (Notice of Appeal is herein enclosed and marked as Annexure C).

Hence, the effect of the above is that there is currently a winding-up action/proceeding pending against the said Honeywell Group Limited.

The bank quoted a provision of Section 577 of the Companies and Allied Matters Act 2020 as saying, “Where a company is being wound up by the court, any attachment, sequestration, distress or execution put in force against the estate or effects of the company after the commencement of the winding-up is void…

This, according to Ecobank, restricts Honeywell Group from proceeding with the sale of Honeywell Flour Mills to Flour Mills of Nigeria.

It added, “Consequently, we hereby demand that Flour Mills of Nigeria Plc, in its best corporate interest, immediately cease and desist from consummating the subject transaction, which aims to divest the assets of a company being wound up (Honeywell Group Limited).

Please be further informed that 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.”

Between 2006 and 2008, three member companies of Honeywell Group Limited, which are -Honeywell Flour Mills Plc, Anchorage Lesiures Limited, and Siloam Global Services Limited, obtained loans from Oceanic Bank for commercial purposes.

By 2011, Oceanic Bank became Ecobank.

Following protracted negotiations between the parties, they both reached an agreement that Honeywell would only pay the sum of N3.5 billion as its final settlement of the total liability of all three companies.

According to a report, both parties agreed in July 2013 that Honeywell would pay the sum of N3.5 billion in full and final settlement of the indebtedness of the 3 companies stated above. This agreement was reached between representatives of both entities at the most senior Management level (including Ecobank’s Managing Director and Company Secretary), and was re -confirmed by the Bank in meetings and correspondence with Honeywell.

In January 2014, Honeywell fulfilled its commitment to the agreement by paying the N3.5 billion as the final settlement of the facilities, which Ecobank acknowledged. But surprisingly, 11 months after that, Ecobank came out to say the money paid was only a part payment to what the Fast-moving consumer goods (FMGC) owed.

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Air Peace Announces Flights Into Anambra Airport

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Air Peace Announces Flights Into Anambra Airport

Air Peace has stated that it would commence scheduled flights operations into the Anambra International Cargo and Passenger Airport on Tuesday, December 7, 2021.

The airline’s decision to commence flight operations into the airport followed the recent approval of the airport by the Nigerian Civil Aviation Authority.

This development was disclosed by Air Peace’s spokesperson, Stanley Olisa, in a press statement issued on Saturday.

Olisa said, “This is great news for the people of Anambra State as we are launching four flights weekly into the new airport on Tuesday. For a start, we shall be operating on Tuesdays, Thursdays, Saturdays and Sundays, and as operations gather momentum, we shall increase frequencies to daily flights”.

The airline’s spokesman further said that passengers can start booking flights via their website or mobile app. He added that Air Peace plans to connect Anambra to other cities asides from Lagos and Abuja.

By the end of January 2022, we will have commenced the following connections: Anambra-Kano-Anambra, Anambra-Ibadan-Anambra and Anambra-Port Harcourt-Anambra. Air Peace is unwaveringly determined to interconnect Nigeria, providing connections which facilitate seamless economic exchanges and foster unity.

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UBA Group Dominates the 2021 Banker Awards, Wins ‘African Bank of the Year’

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uba bank of the year

Africa’s global bank, United Bank for Africa (UBA) Plc yet again, reaffirms its leadership position across Africa, as the bank has been globally recognised as the African Bank of the year 2021 by the Banker Magazine, a leading global finance news publication published by the Financial Times of London.

UBA’s solid financial performance, its excellent service delivery to customers and its continuous role of facilitating rapid economic growth across the African continent were some of the reasons that led to the bank being named best bank in 12 of its African subsidiaries and in Nigeria. UBA Nigeria Plc, UBA Benin, UBA Burkina Faso, UBA Cameroon, UBA Chad, UBA Congo Brazzaville, UBA Cote D’Ivoire, UBA Gabon, UBA Guinea, UBA Liberia, UBA Senegal, UBA Sierra Leone and UBA Zambia all came out top as the best banks in their respective countries.

This will not be a first for UBA.  In 2020, six of its subsidiaries in Benin, Cote D’Ivoire, Chad, Liberia, Sierra Leone and Zambia were winners of the Best Bank award. This year, the UBA Group is breaking a record with its exceptional wins as African Bank of the Year and Bank of the year in 13 countries.  The total 14 awards makes it the first time ever in the history of the almost 100 years of The banker, that any banking group will be clinching as many as 14 wins in a single year.

At the Virtual award ceremony which was held on December 1st 2021, the Middle East and Africa Editor for The Banker, John Everington, explained at the event that a rigorous and highly analytical process is made annually to reach the decision for each Bank of the Year award and the institution’s reputation for independence, authority and integrity is thoroughly applied to each submission.

“While several African banks impressed the judges this year, there was no doubt as to the worthiest recipient of the Bank of the Year for Africa – UBA Group – a clear winner across a wide range of criteria. UBA has performed impressively across its footprint with a strong financial performance across most of its markets,” Everington said.

UBA’s Group Managing Director/Chief Executive Officer, Kennedy Uzoka, who expressed delight over the recognition from The Banker stated “Like I always say, at UBA, we must be doing something right. Winning 14 total awards in13 subsidiaries and the Bank of the Year on the African continent is a big achievement.’ 

Continuing, Uzoka said, “The recognitions come as a reassurance that we are on track in consolidating our leadership position in Africa, as we continue to create superior value for all our stakeholders. We have our millions of customers across the globe and our many thousands of staff to thank for this. They are the very reason why we keep winning’

Since1926, the Bank of the Year awards has been celebrating the best of global banking and is regarded as the industry standard for banking excellence. The 2021 edition highlights those institutions that have outshone their peers in terms of performance, strategic initiatives and response to the Covid-19 pandemic.

The Banker Magazine is a publication of the Financial Times – a leading global finance news publication which has been in existence since 1888. The Banker magazine is the definitive reference in international banking for high level decision makers.

United Bank for Africa Plc is a leading Pan-African financial institution, offering banking services to more than twenty-five million customers, across over 1,000 business offices and customer touch points, in 20 African countries.

With presence in the United States of America, the United Kingdom and France, UBA is connecting people and businesses across Africa through retail; commercial and corporate banking; innovative cross-border payments and remittances; trade finance and ancillary banking services

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FBNQuest Gets New Non-Executive Director

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FBNQuest Gets New Non-Executive Director

FBNQuest Capital Ltd., a subsidiary of FBN Holdings, has announced the appointment of Alhaji Abdullahi Ali Gombe, as an Independent Non-Executive Director.

The Chairman, FBNQuest, Mr. Oyewale Ariyibi, disclosed this in a statement made available on Wednesday in Lagos.

Ariyibi said the company had received all relevant regulatory approvals for the appointment.

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He said that Gombe was joining the board of the company with over 28 years of professional experience.

Ariyibi said he had served several institutions in various professional capacities and had been involved in key transactions that added significant value to the organizations where he served.

He added that prior to joining the board of FBNQuest, Gombe served on various boards including Nigalex Nigeria Ltd., FBN Bureau De Change Ltd., and FBN Bank (DRC) Ltd.

“On behalf of the board, management, and staff of FBNQuest Capital, I am delighted to welcome Alhaji Gombe, MNI to the Company as he brings on board his wealth of experience cutting across various industries and institutions.

“We are certain that his experience will have an immediate and positive long-term impact on the business.

“FBNQuest remains committed to recognizing strong corporate governance as a key driver in ensuring sound business practices are entrenched in the core of its operating model for transparency and the inclusion of all stakeholders,” he added. 

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