Billionaire businessman Femi Otedola, his company, Zenon Petroleum and Gas Limited, and three other companies, have dragged Zenith Bank to court over the alleged illegal sale of shares worth over N25 billion.
The plaintiffs, which include Seaforce Shipping Co Limited, Luzon Oil and Gas Limited, and Garment Care, have accused the bank of unlawfully deducting a sum of 205,346,373 from its account.
The defendants in the suit, filed on March 6, 2024, include Zenith Bank Plc, Quantum Zenith Securities and Investment Limited, Veritas Registrars Limited, and Central Securities Clearing System Plc.
The case is pending before Justice Deinde Isaac Dipeolu at the Federal High Court in Lagos.
The plaintiffs are seeking the court’s determination on whether Zenith Bank and others are entitled to dispose of its shares, as well as whether the defendants can withhold, trade, transfer, or sell the shares belonging to the plaintiffs without their prior consent and approval.
Additionally, they want the court to address whether Zenith Bank is entitled to benefit from its failure to disclose and deliver all assets of Zenon Petroleum and Gas Limited used as security under the loan facility agreement to AMCON.
In their prayers before the court, Otedola and the other plaintiffs seek several declarations and orders, including a declaration that Zenon Petroleum and Gas Limited remains discharged from any further obligation to Zenith Bank, a declaration that the offer letter did not confer any right on the bank to withhold, transfer, or sell the plaintiffs’ shareholdings, and an order directing Zenith Bank to refund the wrongfully debited sum and to release and return the shares illegally taken from the company.
The plaintiffs also seek damages and the cost of instituting the action.
The suit is supported by a 40-paragraph affidavit, deposed to by Philip Akinola, the Managing Director of Zenon Petroleum and Gas Limited, detailing how the bank allegedly illegally debited his company’s account and sold its shares.
