Court Halts IBEDC’s Shares Transfer Over Ownership Dispute

The Federal High Court in Lagos has granted an interim injunction, preventing Archlight Nigeria Limited from transferring its 50% equity shareholding in Ibadan Electricity Distribution Company Limited (IBEDC) to any other party. This development comes as 86 Gardens Limited filed a lawsuit against Archlight Nigeria Limited and two other defendants over the alleged transfer of its shares.
The court’s decision, delivered by Justice Musa Kakaki, scheduled the hearing for May 16, 2025. The interim order prohibits Archlight Nigeria Limited, its agents, directors, officers, privies, or nominees from transferring the 50% equity shareholding to another party or third party.
The plaintiff, 86 Gardens Limited, is seeking the court’s determination on several issues, including:
Breach of Share Sales Agreement: Whether Archlight Nigeria Limited breached the Share Sales Agreement of July 2024 by failing to transfer 50% of its equity and shareholding to 86 Gardens Limited.
Breach of Tripartite Custody Agreement: Whether the second defendant, Abiodun J. Owonikoko (SAN), breached the Tripartite Custody Agreement by refusing to release the Share Transfer Forms and related documents to 86 Gardens Limited.
Conflict of Interest: Whether the second defendant acted with a conflict of interest by failing to register the Share Transfer Forms with the Corporate Affairs Commission (CAC).
86 Gardens Limited is seeking various reliefs, including an order of specific performance, general damages of N100 million, and a declaration that the second defendant exhibited a conflict of interest. The court’s decision will be eagerly awaited, as it will determine the fate of IBEDC’s shares and the outcome of the ownership dispute.