The United Bank of Africa (UBA) has criticised AMCON sale of its 60 percent stake in Ibadan Electricity Distribution Company (IBEDC) for 100 billion Naira, claiming it was significantly undervalued at less than 20 per cent of its real worth of over one trillion Naira.
UBA, one of the plaintiffs in the ongoing suit, with AMCON, Polaris Bank, and Archlight Nigeria Limited, the entity to which it was purportedly sold, as the first, second, and third defendants respectively.
The Managing Director/CEO of AMCON, Gbenga Alade, had last Thursday during a press briefing in Lagos, announced that IBEDC has been sold for 100 billion Naira, which according to him was double of what Ibadan DisCos was going to be sold.
In the latest development, UBA through one of its recovery officers, argued that the transaction is subjudice, as the matter is currently before Justice Akintayo Aluko of the Federal High Court, Lagos State.
The bank therefore queried the court to set aside the sale, noting that the process breached contractual obligations, violated transparency standards, and failed to secure the collective approval of the lenders.
It argued that the press conference granted by AMCON’s boss was contemptuous and would take legal steps in that regard.
According to UBA, all parties were represented in court on July 3, 2025, and that during the session, counsel for the 2nd and 3rd defendants acknowledged pending motions seeking to vary an earlier court order obtained by the plaintiff.
Both Dr. Chika Agbu (SAN) and Babatunde Ogala (SAN) apprised the court of their unpreparedness to advance, attributing their stance to belated service and deficient documentation.
The case, the bank said, was adjourned to October 2, 2025, for hearing of all pending applications.
The bank asserts that the alleged divestment contravenes the stipulations of the Facility Agreement and is subject to annulment by the court.
In its application, UBA is pursuing interlocutory injunctions to prevent AMCON, Polaris Bank, Archlight Nigeria Ltd, and their representatives from disbursing funds or taking any action concerning the divestment of Integrated Energy Distribution and Marketing Limited’s (IEDM) 60 percent stake in IBEDC, until the substantive suit is resolved.
In accordance with an affidavit sworn by UBA’s representative, Afamefuna Ogbonna, IEDM had secured a $162.4 million syndicated loan from multiple banks, with UBA contributing $35 million, which constitutes 21.5 percent of the total amount, to obtain the 60 percent share in IBEDC subsequent to the 2013 PHCN privatization. Polaris Bank, formerly Skye Bank was however appointed Facility Agent.
In accordance with IEDM’s standard procedure, AMCON ostensibly seized control of IEDM’s stake in IBEDC and designated a Receiver/Manager in August 2021.
UBA contends that AMCON independently assumed the position of Facility Agent and advanced a divestment strategy without consulting or securing approval from the lenders.
Investigations by the bank indicated that AMCON initiated a bid process in 2022 and later selected Archlight Nigeria Limited as the preferred bidder – despite the latter’s failure to submit a bank guarantee.
UBA alleged that the transaction lacks transparency, noting that no valuation report or share purchase agreement was shared with it or other lenders.
UBA, in a preliminary notice issued on April 28, 2025, articulated its apprehensions to AMCON, which were dismissed in a subsequent reply dated May 16, 2025.
UBA underscored its role as the custodian of depositors’ and shareholders’ assets, highlighting that the N70 billion liability arising from IEDM’s default continues to accumulate interest, thereby exacerbating its financial standing.