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Keep off Honeywell Flour, Ecobank warns prospective buyers

2 weeks ago | 99



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ECOBANK Nigeria Limited yesterday placed a caveat on any share of Honeywell Group Limited, following media reports on a move by Flour Mills Nigeria PLC to acquire 71.69 percent of Honeywell Group Limited.

It warned prospective buyers that Honeywell Group Limited is allegedly indebted to the bank, adding that the debt is currently the subject of litigation.

The ‘buyer beware’ was contained in a statement Ecobank released through its counsel, Kunle Ogunba & Associates, entitled: 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: ‘honeywellgroup.com’ wherein the 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.   (The Nation)

- Nov. 24, 2021 @ 10:07 GMT /

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