A Federal High Court in Abuja has set
aside the sale of telecommunication firm, Etisalat International Nigeria
Limited (9mobile) to Teleology Nigeria Limited.
Justice
Binta Nyako, in a ruling, voided all steps taken in relation to the
exchange of ownership of Etisalat despite pending orders for maintenance
of status quo, restraining parties to a suit, involving investors and
other stakeholders in the company, from destroying the res (subject
matter).
Justice Nyako,
who noted that parties were all aware of the existence of the suit, the
defendants having been served between April 24 and 27, 2018 with the
originating process, faulted the sale, as claimed by the plaintiffs in a
motion filed on November 16, 2018
The
judge held: “Any action that has been taken concerning the rest of this
litigation from the 25th day of April, which is earlier in time, should
revert to the position, as of the res, to its 25th day of April 2018.”
The
ruling, given on April 1, 2019 (a copy of which was sighted on
Thursday) was in a suit, marked: FHC/ABJ/CS/288/2018 filed on April 6,
2018 by two major investors in Etisalat, Afdin Ventures Limited and
Dirbia Nigeria Limited.
Afdin
and Dirbia, whose investments in Etisalat is estimated at $43,033,950,
had sued to retrieve their investments on the grounds that they were
aggrieved, having been excluded from the decision making process of the
company.
Defendants in
the suit are: Karington Telecommunication Ltd, Premium
Telecommunications Holdings NV, First Bank of Nigeria Plc, Central Bank
of Nigeria, Etisalat International Nigeria Ltd and Nigeria Communication
Commission (NCC).
The
plaintiffs stated, in a supporting affidavit to the motion dated
November 16, 2018, that they resorted to praying the court to void the
sale of Etisalat, upon learning that the defendants have proceeded to
conclude the transfer the company’s ownership despite the restraining
orders made earlier by the court.
They
said: “In 2009, the plaintiffs/applicants purchased a total of
4,303,391 class “A” shares from the 1st, 2nd and 5th defendants
(Karlingtton, Premium Telecommunication and Etisalat International) at
the rate of $43,033,950 only, and were issued with share certificates.
“In
2010, the defendants rebranded Etisalat Nigeria Limited to 9mobile and
entered into negotiations with Smile.com and Glo Network to transfer its
licence without recourse to the plaintiffs.
“When
the plaintiffs became aware of the purported transaction, they filed
this suit along with two applications namely: motion ex-parte and motion
on notice, seeking for an order of injunction to restrain the
defendants from going ahead with the transaction.
“When
this suit came up for hearing on the 17th of April, 2018, this
honourable court ordered parties to maintain status quo-pending the
determination of the motion on notice.
“Notwithstanding
the aforementioned order, the defendants continued negotiations with
Smile.com and Glo Network in defiance to the subsisting order of this
court.
“When the plaintiffs/applicants discovered that the defendants were bent on selling Etisalat Nigeria Limited
“rebranded
9moile” despite the subsisting order of court, they instructed their
Counsel Mahmud A. Magaii (SAN) to write and caution the defendants of
the implications of their actions.
“Upon
receipt of the above letters, the 3rd and 4rd respondents (First Bank
and Central Bank), through their counsel Olaniwun Aiayi wrote to the
applicants, through their counsel on the 24th August, 2018 and 31th
August, 2018, denying the existing of the order of status quo made by
this honourable court on the 17th April, 2018 and 31th August, 2018.
“When
this matter comes up on the 10th of October, 2018, counsel to the
plaintiff Okechukwu Edeze, informed the court of the attempts made by
the defendants to sell Etisalat Nigeria Limited.
“Consequently,
this honourable court made another order of status quo, directing
parties to refrain from tampering with the subject matter of the suit.
“Despite
the orders of this honourable court made on the 10th of October, 2018,
the defendants went ahead and sold Etisalat Nigeria limited, rebranded
9moible to Teleology Nigeria Limited with impunity.
“It
will be in the interest of justice to set aside the sale of Etisalat
Nigeria limited rebranded 9moible to Teleology Nigeria Limited and
commit the defendants to prison for disobeying the lawful orders of the
court.”
