Bank PHB’s Acquisition Of Spring Bank Illegal-Court

Lagos (THEWILL) - A Lagos Federal High Court on Wednesday declared as illegal the acquisition of Spring Bank Plc by Bank PHB Plc saying it was done in violation of its earlier other.

Justice Lambo Akambi in setting aside the deal also nullified the appointment of the new board of management of the bank, which was effected by the Central Bank in September 2009.

He particularly chided the Central Bank, the Nigerian Stock Exchange and the Security and Exchange Commission for their roles in the acquisition and restrained the defendants from tampering with the logo, name or title of Spring Bank either on its own or as member of Bank PHB Plc.

The court also restrained Bank PHB from passing or publishing any resolution regarding bidding for the shares of Spring Bank Plc pending the determination of the suit before it.

“The integrity of the court is at stake and court must therefore intervene to protect and preserve such integrity, lest it will be made a laughing stock and will be seen no longer as the last hope of the common man,” he said.

Two aggrieved shareholders of the bank, Lord Chief Udensi Ifegwu and Emmanuel Okorie had approached the court to stop the deal at the initial stage.

Justice Akambi had accented to their request giving an interim order restraining the respondents namely; Bank PHB, Spring Registrars Limited, SEC, CBN, Westcom Technologies and Energy Services and Spring Bank from sanctioning the planned acquisition of the shares of Spring Bank pending the determination of the suit.

The court adjourned to February 16, 2010.