Archlight denies assigning 50% of Ibadan DisCo shares to 86G
Archlight Nigeria Limited has denied claims that it signed over 50 per cent equity shareholding in the Ibadan Electricity Distribution Company to 86 Gardens Limited.
In 2024, Archlight acquired a 60 per cent stake in Ibadan DisCo from the Asset Management Corporation of Nigeria, which had taken over the company due to unpaid loans.
The company also denied all the claims in a court filing by 86G seeking to interfere with the ownership and transfer of shares in the IBEDC.
The PUNCH reports that 86 Garden had secured an interim court injunction preventing Archlight Nigeria Limited or its agents from transferring the 50 per cent equity shareholding in the company to any other party, claiming that the equity had already been signed over to him.
But in a statement released by the company’s management, it was said that contrary to the narrative being pushed by 86 Gardens, Archlight Nigeria Limited emerged as the preferred bidder for the 60 per cent equity in IBEDC as offered by AMCON during a competitive bid in 2024.
It was learnt that 86 Gardens, through its subsidiary, Africa Plus Partners Nigeria Limited, participated in the AMCON bid but was designated as a reserved bidder after failing to meet the bid requirements.
“Following the announcement of Archlight as the preferred bidder, 86 Gardens congratulated the company and made an unsolicited approach to become a co-investor in Archlight (and not in IBEDC). Some of Archlight’s shareholders negotiated a deal with 86G, but the agreement-in-principle reached was kept in escrow pending the fulfilment of terms and conditions, especially the payment of agreed fees for share transfer by 86G,” a statement by the Archlight Legal Consultant, Jesuyemisi Odeyemi, read on Thursday.
The statement further stated that despite multiple deadline extensions, 86 Gardens never made the required financial commitment.
Consequently, it was said that the co-investment proposal lapsed, and Archlight’s shareholders, who negotiated with 86G, lawfully disposed of their shares to other interested parties in August 2024 and exited the company.
“86G later insisted the custodian of the unfulfilled agreement-in-principle must list it as a shareholder of Archlight despite not making any financial commitment. This prompted the custodian to convene a meeting of all the parties to explore the possibility of settling the matter.
“Archlight noted at the meeting that though 86G had no legal claim due to its failure to make the agreed financial payment, it would still entertain a co-investment deal acceptable to all the shareholders. 86G accepted the agreement deal reached at the meeting and promised to formally revert within one week.
“Instead of reverting on the agreement as promised, Archlight was shocked to learn that 86G had filed a suit at the Federal High Court Abuja, challenging the legality of the announcement of Archlight as the preferred bidder instead of its SPV, Africa Plus Partners Nigeria Limited. This suit was contested by Archlight and subsequently dismissed on October 21, 2024. This effectively foreclosed any business relationship between 86G and Archlight on its share acquisition.” The statement was added.
Setting the records straight, Archlight stressed that the documents referenced by 86 Gardens in its claim were deposited in escrow, and it clearly stated that the share transfer was conditional upon full payment and a supplemental agreement.
“Contrary to its assertions, 86 Gardens failed to meet these conditions and has no legal or beneficial interest in Archlight or its IBEDC equity.
The custodian of the escrow documents acted within the law and professional standards by refusing to transfer documents without the fulfilment of the agreed terms.
“The recent court injunction obtained ex parte by 86 Gardens is an abuse of judicial process and a clear attempt to frustrate a lawfully executed business transaction,” the statement added.
It included that Archlight has full and unencumbered ownership of its equity in IBEDC, secured through a “transparent, competitive, and duly recognised” bid process.
Archlight said it has yet to be served any court papers on the suit by 86G, stressing that the company will vigorously defend its reputation and rights through all available legal means.
The PUNCH reports that in the suit marked FHC/L/CS/418/2025, the Federal High Court in Lagos scheduled May 16, 2025, for hearing.
The second and third defendants in the case are Abiodun J. Owonikoko (SAN), who practises under the name Synergy Attorneys, and the Corporate Affairs Commission.
In its originating summons, 86 Gardens, through its counsel to the plaintiff, Seni Adio (SAN), asked the court to determine, among other things, whether the first defendant breached the Share Sales Agreement of July 2024 by failing to transfer 50 per cent of its equity and shareholding to it.
