Peter OBIORA investadvocate

Lagos (INVESTADVOCATE) – Shareholders under Sir Sunny Nwosu, the National Coordinator, Independent Shareholders Association of Nigeria (ISAN) has accused the Central Bank of Nigeria (CBN), its Governor, Sanusi Lamido Sanusi, and their hirelings with offers to acquire, takeover or buy into the assets and/or business of Union Bank of Nigeria Plc (UBN).

This was contained in a Caveat Emptor (Buyers Beware) by the shareholders under Sir Nwosu Wednesday March 30 2011 on the Guardian Newspaper as made available to investadvocate in reaction to the notice issued to the Nigerian Stock Exchange (NSE) Friday March 25 2011 by Union Bank announcing that it has signed an MOA with African Capital Alliance Consortium.

The second paragraph of the Caveat published by the Shareholders reads thus: “ It May, however, interest members of the public, Nigerians and non-Nigerians alike , particularly those inclusive of the alleged members of African Capital Alliance Consortium being lured by the Central Bank of Nigeria, its Governor Mallam Sanusi Lamido Sanusi and their hirelings with offers to acquire, takeover or buy into the assets and/or business of Union Bank of Nigeria Plc or the Bank, itself to note that the question of the legality of the CBN and its Governor’s interference and intervention in the business and affairs of Union Bank of Nigeria Plc since the 14^th August 2009 till date is the subject matter of pending suits before the Federal High Court, Lagos; and, in particular:

1. Suit No. FHC/L/CS/1313/2009-Union Bank of Nigeria Plc & 5 others Vs Central Bank of Nigeria & 14 Others.

1. Suit No. FHC/L/CP/1511/2010-Nwosu Sunday Nnamdi & Anor Vs. Union Bank of Nigeria Plc & 15 Others.”

“I advise prospects in the announced Union Bank Memorandum of Agreement (MOA) to beware; because there are pending suits in a Court of competent jurisdiction.

Sir Nwosu who spoke exclusively to investadvocate, Thursday March 31 2011 in a telephone interview affirmed that the case should not be undermined, “the way the Management of Union Bank is going about it following the announcement of an MOA with the African Capital Alliance Consortium, the core investor the Bank said was selected by its Board of Directors is capable of undermining the Court process” he said.

“The Caveat speaks for itself because there are cases in Court, and we think that we should not trample on it; since that is the hope of the Common Man” Sir Nwosu said.

The Shareholder Leader further affirmed that despite the fact that the Management of Union Bank were served with Court papers and both parties have had some appearances in Court, they still went ahead with the process of signing and MOA.

“They were served and we have had some appearances in Court. And the Law is very clear that when a case is in Court, every other status quo should be maintained pending the outcome of the case; because it is a complaint to a third party to help us look into the issue if it is proper or not” he said.

Sir Nwosu said the Management of the Bank with their recent action is a move in the direction of destroying the case under contention.

“At the Court on Tuesday, the Lawyer representing Union Bank was also warned that they should maintain Status Quo until a decision would be taken as regards the case and that they should not do any other thing to undermine the matter. And this was in an open Court, though we had complained about the publication announcing the MOU” Sir Nwosu said.

Prior to this time, the CBN had in a Release Monday March 28 2011 posted on its official website; affirmed that it has noted with concern various speculations and unsavoury comments on the proposed mergers and acquisitions of Rescued Banks and wish to categorically state that no approval for any Memorandum of Understanding (MOU) has been granted by the CBN so far.

The Apex Bank went ahead to state that whereas the trend of signing the MOUs is welcome and shows the intrinsic value that investors see in Nigerian Banks and the process signals that the solution to the banking crisis is in the horizon; “MOU can only lead to actual transaction if and when CBN issues no objection and other regulatory approvals” the Statement said.

Nigeria’s Central Bank further affirmed that the process which is being driven by the parties involved and not the CBN will have to be approved by the Board and Shareholders of the Banks concerned. Therefore, all speculations and unsavoury comments on the process are premature and unnecessary.

Sir Nwosu said that although the CBN is suppose to be in the whole process of the purported MOU and for the Governor to have said openly that they are not aware of the MOUs gives credence to their position that such shouldn’t have happened at all; “because we are in Court” the Shareholder Leader affirmed.