Ecobank warns against proposed acquisition of Honeywell

Following the recent media report on the proposed acquisition of 71.69% stake of Honeywell by Flour Mills of Nigeria, Ecobank Nigeria Limited has placed a caveat on any share of Honeywell Group Limited.

It warned off prospective buyers on the ground that Honeywell Group Limited is hugely indebted to the bank, and that the debt is currently the subject of litigation.

The warning was contained in a statement Ecobank released through its counsel, Kunle Ogunba & Associates, titled ‘Purchase of Honeywell Group Limited’s 71.69% stake in Honeywell Flour Mills Limited- Caveat Emptor’.

The statement cautioned the public and corporate bodies on the danger inherent in dealing in any shares of the company.

Ecobank said this was consequent on a press release circulated in several online publications and as further contained on Honeywell Group Limited’s website: ‘’ wherein notification of the proposed divestment of Honeywell Group Limited’s 71.69% stake in Honeywell Flour Mills Plc was advertised.

The bank, narrating its interest in the company, said it advanced several loan facilities which included working capital disbursements to Honeywell Flour Mills Plc.

It alleged that due to the company’s failure to liquidate the said loan facilities, Ecobank 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;

Ecobank stated that Honeywell Group Limited, being Respondent to the winding up petition, objected to the jurisdiction of the trial court to preside over the said suit. This, the bank said, was upheld by the trial court.

Aggrieved with that decision, Ecobank said it filed an appeal (with appeal No: CA/L/1041/2016) at the Court of Appeal, Lagos Division adding that upon a review of Ecobank’s case, the appellate court found merit in the appeal and held that the winding up proceedings against Honeywell Group Limited was properly commenced and that the Federal High Court had jurisdiction to hear the said petition.

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