TheCable

O&O Networks Limited, a special purpose vehicle owned by the Ecobank Group, has denied reports that the federal high court in Lagos has ordered it to forfeit proceeds from the sale of shares in Airtel Nigeria.

In a statement released on Sunday, it said there have been no material legal developments in the plaintiff’s substantive claim for monetary compensation since 2017, although a trial date has been fixed for May 28, 2019.

Broad Communications had first initiated legal proceedings against O&O Networks in 2006 claiming ownership of the shares, which has been sold.

“Contrary to certain press reports, there is no forfeiture order of the Federal High Court of Nigeria in these proceedings that is directed against ETI or Ecobank Nigeria Limited, and neither ETI nor Ecobank Nigeria Limited has made or is required by law to make any payment to the Federal High Court of Nigeria in relation to this long-standing litigation,” the statement read.

“In 2006, the plaintiff’s claim was grounded on an alleged right of first refusal over shares in Airtel Networks Limited that O&O Networks owned.

“The plaintiff claimed ownership of the Airtel shares based on its right of first refusal. In 2017, the plaintiff amended its claim to seek monetary compensation of USD equivalent of N10 billion (approximately $28 million) in place of its claim of ownership of the Airtel share.”

It explained that the court judgement granted on March 7 only approved the plaintiff’s application to have the N22.5 billion realized from the sale of the shares in an escrow account in the name of the chief registrar of the court pending the final determination of the substantive claim.

“O & O Networks Limited believes the substantive claim of the plaintiff is without merit and will continue to vigorously defend all proceedings – interlocutory and substantive – in relation to the plaintiff’s long-standing claim.”