Davidson Iriekpen
18 November 2008
Lagos — Attempts by seven banks to finance the purchase of Chevron Oil and Gas Limited's 60 per cent equity stake of Texaco Nigeria Plc by MRS Holdings Limited, Petroci Holdings and Corlay Global S.A. suffered a major set-back yesterday as a Federal High Court in Lagos restrained them from getting involved in the process.
The sale of Chevron equity stake in Texaco had been a subject of intense bid by MRS Holdings Limited, Petroci Holdings and Corlay Global S.A.
Chevron owns 60 per cent equity in Texaco Nigeria Plc and Zenon Petroleum and Gas Limited currently owns 19 per cent equity stake in the oil retail outfit.
The banks are Union Bank of Nigeria Plc, Zenith Bank, Oceanic Bank Plc, Platinum Habib Bank Plc, First City Monument Bank Plc, Fidelity Bank Plc and Ecobank Plc.
Ruling on an ex-parte motion brought by Zenon, Justice Lambo Akanbi, also granted leave to the applicant (Zenon) to join the banks as the 17th, 18th, 19th, 20th, 21st, 22nd and 23rd respondents respectively in the suit.
Justice Akanbi, who made the order after hearing the argument of Mr. Kehinde Aina and Fayo Adeleye, also granted leave to the applicant to serve the banks the originating processes in the suit and all subsequent processes including, without limit, the petition, motion on notice for interlocutory injunction by substituted means by prepaid courier postage at their respective principal places of business
The court also ordered the following: that such service shall be proper; the applicant shall enter into written undertaking as to damages; and that the motion on notice is fixed for November 2008 for hearing.
The court, had on July 31, 2008, granted an interim injunction restraining Chevron Oil and Gas Limited from divesting 60 per cent of its stake from Texaco.
It also restrained the respondent and any of its agents from bidding, selling, alienating, transferring, disposing and or parting with the possession of the shares held by the 2nd respondent and the 1st respondent pending the hearing and determination of the Motion on Notice in the suit.
Other respondents in the case are Chevron Oil Nigeria Plc, Chevron Africa Holdings Limited, Chevron Global Energy Incorporation, Securities and Exchange Commission, Nigerian Stock Exchange and Corporate Affairs Commission,
Others include BNP Paribas, African Petroleum Plc, Habitat Oil and Gas, Oando Plc, and Acorn Oil and Gas Limited, MRS Holdings Limited and Petroci Holdings and Corlay Global S.A.
There were indications last night that Zenon may have decided to take the latest steps. This follows rumours making the rounds that despite the court orders, Chevron Corporation had announced that its subsidiary Chevron Africa Holdings Limited had agreed to sell Chevron Nigeria Holdings Limited to Corlay Global S.A, a Panamanian company owned by an African-based consortium comprising MRS Holdings Limited and Petroci Holdings.
Last week, Zenon had told the court that after diligently following the order of the court by serving the respondents through substituted means, there were still some reports that the 1st respondent was still planning to go ahead with the sale.
Also last week, the applicant filed application before the court urging it to set aside or nullify all the steps taken by Chevron Oil and Gas Limited towards the sale, bid and transfer of its shares in Texaco.
In an affidavit in support of the motion, it argued that it would be in the interest of justice and the preservation of the sanctity of the orders of the court if all the steps so far taken by the respondents are set aside.
Zenon asked the court for an order restoring the parties to the position the parties were as at the date of the grant of the interim order of injunction of July 31, 2008 pending the determination of the motion on notice for interlocutory injunction dated July 29, 2008.
The oil firm added that the steps taken since July 31, 2008 by the respondent and its agents shall overreach the plaintiff's motion for interlocutory injunction and the substantive remedies in the main suit if the respondent's acts are not reversed, set aside or prohibited.
Zenon further argued that the decision of the court on the pending motion and the substantive suit would be rendered nugatory as the court would be foisted with a fait accompli in respect of the pending motion for interlocutory injunction and the reliefs sought in the substantive claims.
It stated that the steps so far taken by the respondents in spite of the subsisting interim order, pending motion for interlocutory injunction and the substantive matter before the court presented an appropriate reason for the invocation of the disciplinary power of the court pursuant to section 6(6)(a) of the 1999 Constitution.
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