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Business

STANBIC IBTC, MTN COMMUNICATIONS IN N200MILLION BREACH OF CONTRACT PALAVER

Published

9 years ago

July 22, 2015

Sahara Weekly

A Lagos Lawyer, Dr. Charles Dumber Mekwunye, has slammed N200milion suit on the telecommunication giant MTN Nigeria communication Limited (MTNN), over an alleged breach of contract

Joined as co-defendants in the ensuing legal warfare, are an investment company, Lotus Capital Limited, an asset management Company Stanbic IBTC Asset Management and two other limited liability companies, IHS Holding Limited and INT Towers Limited.

Dr. Mekwunye, in his witness statement on oath he swore to and filed before a Federal high court in Lagos South West Nigeria by his Law firm, averred that sometime in 2008, he was invited by a fund management company, Lotus Capital Limited and Stanbic IBTC Assets Management Limited, to invest in a fund purportedly established by the Lotus Capital called ‘Telecoms Private Equity Fund, which was an investment into MTNN Linked Units, and thereby bought 5,000 of the MTNN Linked Units at the rate of 24.56 USD, per unit in 2008, and paid the sum of 122,800 USD, which was equivalent of N18,376,800 million, thereafter he entered into an agreement with the company who was an agent/nominee of Stanbic IBTC Asset Management Company and MTN Nigeria communications.

‪The investor also stated that Lotus Capital through a letter dated July 3, 2008, informed him that he had been allocated with 4,990 units, which represented 4,990 Linked Units of the MTN Communications Nigeria Limited’s private placement instead of 5000 MTN Linked Units. He added that pursuant to the said Telecoms Private Equity Fund Investment Agreement-Joint, he paid the sum of 122,800 USD, which was equivalent of N18,376,800 million, as consideration for the 5,000 units of the MTN Nigeria Linked Units.

‪He revealed further that both Lotus Capital Limited and Stanbic IBTC Asset Management Company, represented to him that at the end of three (3) years, the MTN Nigeria’s Linked Unit will be exchanged for MTN’s Shares in a Special Purpose Vehicle, which will be listed in the Nigeria Stock Exchange or globally recognized stock exchange, this he said was the primarily considered before investing in the MTN’s Linked Units.

‪However at the end of the three-year period, Stanbic IBTC asset management in breach of the agreement failed to create the Exit Special Purpose Vehicle, (SPV), as agreed in private placement memorandum on the ground that MTN International is already quoted on the Johannesburg Stock Exchange, and it was unwilling to setup another publicly quoted company, as well as on certain “tax consideration”. Whereas they clearly misinterpreted to him the creation of an Exit SPV when they never intended to setup same, especially vast the tax legislation, MTN International being already quoted on the Johannesburg Stock Exchange, and other circumstances as regards public companies have remained unchanged from the commencement of the offer and for the three years of the contract tenure up to February 2011, and should have been anticipated by MTN International and the defendants.

‪Following the failure/refusal of the defendants to setup a Special Purpose Vehicle, SPV, at the expiration of the three years anniversary of the nominee structure, as stated in the memorandum, Lotus capital without his consent or knowledge entered into a supplemental agreement to the Custodian Term and Condition with Stanbic IBTC Assets Management limited dated November 1, 2010, which was captioned Information Memorandum in respect of Exit Mechanism for beneficial shareholders of MTN Nigeria Communication Limited, amending the terms of the private placement memorandum regarding the establishment of a Special Purpose Vehicle, thereby creating alternative Exit Mechanism which was neither listed on the Nigeria Stock Exchange or any globally recognized stock exchange

‪Dr. Mekwunye averred further that in breach of the 2008 agreement, he was not given the 90 days or three months notice required under Clause 12 of Custodian terms and conditions to the private placement memorandum for the exchange of the exit mechanism and by April 4, 2013, Lotus Capital informed him of an upward review of “management fees” without his knowledge/consent, the said management fees was arbitrarily reviewed to one percent of the value of his investment, and was to take retroactive effect from January 2013, as a result, the sum of 1,750 USD, being one percent of the then value of his investment was deducted by the Lotus. Capital as per the letter of April 4, 2013 in January 2013, January 2014 and January 2015 making the total of 5,250 USD management fees deducted from total value of his MTN unit each year. This he claimed has caused him considerable loss since 2011.

‪As a result of the alleged breach of contract, the plaintiff is seeking the following court declaration that the Lotus Capital is in breach of the contract for the sale of MTN Linked Unit shares it entered into with him on May 21, 2008, a declaration that there exists a fiduciary relationship between them.

Declaration that the defendants improperly induced him to enter into telecom private equity fund management of May 21, 2008, by representing to him after three years of the nominee structure all MTN Nigeria Linked Units will be converted into shares in MTN Nigeria through a Special Purpose Vehicle.

‪ He is also seek a court order for the immediate return of the sum of 1,770 USD, being one percent value of his investment deducted by Lotus Capital the on January 1, 2013, and for the refund of 1,770 USD deducted in January 2014, and also the sum of 4,500 USD, deducted in January 2015, purported as management or nominee fees or such as court may find to have been deducted as management fees for each of the three years.

An order of perpetual injunction restraining the defendants jointly, and severally, their privies, agents, and successors from further deducting any sum as management or nominee or any other fees whatsoever from the dividends accruing to him from the dividends payable on MTN Nigeria Linked Units or from the value of the 5000 MTN Linked Units owned by him.

And an order compelling the defendants to pay him the sum of N200 million, as general damages against the defendants.

‪However, Stanbic IBTC Assets Management Limited, in its statement of defence deposed to by its Investment Manager, Mr. Olugbenga Saseun, averred that Dr Mekwunye and other defendants are unknown to it and that it has never had any relationship whatsoever, whether contractual or otherwise, with the investor.

‪ However he affirmed that the plaintiff in his statement of claim was right that sometime in 2007, MTN International under private placement arrangement offered MTN Linked Units of MTN Nigeria Limited to some private individual and institutional investors in accordance with the terns and conditions stated in a private placement memorandum, adding that he was involved and had knowledge of the offer by virtue of his employment with the Stanbic IBTC Asset Management company but stated that his employer did not either directly or through Lotus Capital, solicit the interest or investment of the plaintiff in the offer of MTN Linked Units offered under the private placement arrangement.

‪ He also affirmed that his employer never make any misrepresentation to the plaintiff, and that his employer was not privy to the alleged “telecoms private equity investment agreement” entered into by the plaintiff and Lotus capital therefore, it is not possible that his employer could have been a party to any misrepresentation allegedly made to the plaintiff that after three years the MTN Nigeria communications would set up a special purpose vehicle to be listed on the Nigeria Stock Exchange.

‪ Consequently, StanbicIBTC asset Management urged the court to dismiss the suit as is baseless, unmeritorious, and unjustifiable.

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Business

Dangote crashes Diesel price to N1,000 per litre

Published

3 days ago

April 16, 2024

Sahara Weekly

Dangote reacts to EFCC’s visit to its Headquarters

Dangote crashes Diesel price to N1,000 per litre

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In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from 1200 to 1,000 naira per litre.

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While rolling out the products, the refinery supplied at a substantially reduced price of N1,200 per litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600 per litre.

This significant reduction in the price of diesel, at Dangote Petroleum Refinery, is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.

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brands/telecom

Coalition of Civil Society for Good Governance, Others Are Purveyors of falsehood Says AAS Legal Team As Jesam Micheal Exposes Their Sponsors (Video)

Published

3 days ago

April 16, 2024

Sahara Weekly

Coalition of Civil Society for Good Governance, Others Are Purveyors of falsehood Says AAS Legal Team As Jesam Micheal Exposes Their Sponsors (Video)

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The lawyers of Afriq Arbitrage System, Barr. Obeten and Barr. Henry have called out the Coalition of Civil Society for Good Governance led by Comrade Okpanachi Jacob as Purveyors of falsehood.

This is not unconnected to their ungodly collaboration with individuals like Prince Humble Eteng, Michael Okoh, Okoi Daniels, Engineer Awajioma who have been slammed with a ten million dollar Lawsuit for nefarious activities to injure the longstanding reputation the organisation has maintained on charges bothering on cyber bullying, attempt to life and property, lies and unlawful incitement and instigation against the CEO of the company , Jesam Micheal, his family and organisation.

In a global conference on Tuesday, April 16th, 2024, the legal representatives described their actions as inappropriate, unfounded and a campaign of calumny to malign the integrity of the organisation and management.

According to Barr. Obeten the matter is in court and the security agencies have picked Abayomi Olusesan who has admitted to committing the heinous crime of stealing investors funds to the tune of $87m. So why accuse the CEO, Jesam Micheal of defrauding the company of the said amount?

Speaking further, Barr Henry reiterated their stand to take legal actions against the group for being biassed despite knowing the truth and for misleading the general public by allowing themselves to be used by agents of falsehood.

In conclusion, the CEO of Afriq Arbitrage System, Jesam Micheal wondered why a reputable group like CCSGG could be used by Prince Humble Eteng, Michael Okoh and others. He showcased the official court documents which confirmed that Abayomi admitted stealing the investors fund to the tune of $87m which he said was also captured in video evidence. He revealed that some of the properties he bought with part of the money has been collected, remaining the main money which he promised to return to the company. However, after being granted bail, he reneged on his promises and was picked up again by the relevant authorities.

Sadly, his cohorts, Prince Humble who is not even an investors connived with MICHEAL OKOH, PRINCE HUMBLE ETENG,OKOI DENOCK, TOCHUKWU NWOYE, DINGCHI YARLING, Engineer Awajioma and Others to fabricate all sorts of lies against Jesam and AAS.

” We will not take the laws into our hands but they should be ready to face the wrath of the law of the land. These are the same people who dragged us to the security agencies and when we got there with facts they ran away and became fugitives, Out of frustrations, they devised a kangaroo world press conference to disseminate all manners of fabricated lies and deceits”

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Business

Afriq Arbitrage System Slams $10 million Lawsuit Against Micheal Okoh, Prince Humble Eteng, Hajj Ibrahim, Engineer Awajioma and Others (Video)

Published

4 days ago

April 16, 2024

Sahara Weekly

Jesam Micheal, the Rise of the Moon Among Stars, A Game Changer By Femi Oyewale

Afriq Arbitrage System Slams $10 million Lawsuit Against Micheal Okoh, Prince Humble Eteng, Hajj Ibrahim, Engineer Awajioma and Others (Video)

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The board of directors of Afriq Arbitrage Systems after an emergency meeting condemned in strong terms the attitudes of Prince Humble Eteng, Michael Okoh, Okoi Daniels, Engineer Awajioma and others about their nefarious activities to injure the longstanding reputation the organisation has maintained and in a final resolution, resolved that the above parties be sued for defamation and has slammed a ten million dollar lawsuit with a suit number w/2011/2024 against them at the High court of the Federal capital territory in the Abuja judicial division on Monday, April 15th, 2024 on charges bothering on cyber bullying, attempt to life and property, lies and unlawful incitement and instigation against the CEO of the company , Jesam Micheal, his family and organisation.

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In the lawsuit through the legal representation of Jesam Michael and AAS by Barrister Ovat the service required the defendants to appear In court within 14 days, else judgement will be issued against them in absentia.

It would be recalled that few days after series of cyber bullying against the CEO of Afriq Arbitrage System, Jesam Micheal and his Family by MICHEAL OKOH, PRINCE HUMBLE ETENG,OKOI DENOCK in collaboration with one TOCHUKWU NWOYE, DINGCHI YARLING, Godwin, Benjamin Uwanga and Findins, Jesam escaped assassination attempt as gunmen numbering over ten, armed with sophisticated weapons invaded his lounge in Lagos seeking for him.

Information available to us revealed that when the hardened criminals invaded the lounge on Friday, April 5th, 2024 where Jesam was billed to address his workers, they were demanding for him and when they learnt he couldn’t make the meeting as expected, they descended on the staff and customers threatening to kill them in his stead. They also went away with the company’s properties such as laptops, equipment and gadgets of staffers and customers.

Micheal Okoh who has been ranting on Social media against the CEO of Afriq Arbiritage System has been exposed along with Prince Humble Eteng, Okoi Denock as partners in crime with Abayomi oluwasesan who is in prison for defrauding the financial platform to the tune of $87 million dollars

According to reports, Micheal Okoh is an investor in AAS who has benefited from the scheme and has withdrawn over three thousand dollars which he never disclosed to his gullible followers until the evidence was uncovered and exposed to the community.

Aside from that, information revealed that Micheal Okoh, Prince Humble And Okoi Denock have been working in tandem with Abayomi in plotting the loot from AAS and threatening the life of Jesam Michael and his family. In a series of life threatening messages the plotters swear to eliminate him and his family for standing on the path of truth, justice and for arresting Abayomi in recovering the loot. Also, these revelations are not unconnected to the fact that these people engineered Abayomi not to return investors money back to the community.

However, the long arm of the law will soon reach them as Abayomi who has willingly confessed to the heinous crime he committed to the company is arrested and taken to court where he is Remanded and Micheal Okoh and his cohorts we learnt are also on the radar of the security operatives for collaboration and cyber bullying.

Sadly, the threat to life of the CEO and his family by these people should not be taken lightly as just as Mr Micheal Okoh said in his video that he will bring him down, same day, gunmen were sent to invade AAS lounge on the same day he was to address his workers for the year.

According to the security officer of the company, the ugly incident has never happened before on any of their investments until this brazen threats from Mr Okoh and others.

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