Dear Sir: We are solicitors to some shareholders in FinBank Plc on whose behalf and instructions we write to you in connection with the above subject matter.
It is our instruction that the Executive Management of FinBank, under the superintendence of Mrs Susan Iroche and direction of Alhaji Abdulrahman Yinusa and Adam Nuru, has been manipulating the process of acquisition of FinBank to favour First City Monument Bank Plc (FCMB) to the detriment of every other stakeholder except themselves. It is clear and obvious that FCMB submitted the worst bid, in every aspect, yet it is being touted as the “Preferred Bidder”. The Executive Management has been promised that it will be retained as consultants.
It should interest you to note that Alhaji Abdulrahman Yinusa is a member of Afrinvest which is supposed to be the “Independent Financial Adviser” appointed by FinBank for this process. Alhaji Yinusa’s wife is a senior member of staff of Afrinvest. Of further interest is the fact that Chapel Hill, one of the Financial Advisers, belongs to Bolaji Balogun who is the elder brother of Ladi Balogun, the Managing Director of FCMB and both of them are children of Otunba Subomi Balogun, the owner of First City Group, owners of FCMB. Please note also that Ms Yewande Sadiku, who is the leader of the IBTC Team, has direct filial relationship with the owners of FCMB. IBTC is the Lead CBN-appointed Financial Adviser in respect of FinBank. Adam Nuru, one of the current CBN-appointed Executive Directors of FinBank, was a General Manager at FCMB prior to his appointment at FinBank.
The Executive Management has manipulated the process even to the extent of using certain professional firms that are of less proven competence than their peers and still paying them higher just because they readily lend themselves to this manipulation.
At the risk of boring you with the details, may we remind you that FCMB’s bid is for 82% ownership of FinBank at N18billion. The other conditions contained in their bid easily reveal that FCMB requires FinBank to clean up FCMB’s books and they have found willing accomplices in the Executive Management of FinBank. One bidder submitted a bid of N30billion for 55%, while another submitted a bid of N35billion for 51% and yet another N30billion for 75%. Is it not curious that it is the lowest bid with the worst conditions that is being pushed as the “Preferred Bidder” in a process that is supposed to enhance shareholder value!
A sale to FCMB would mean a complete loss to existing shareholders and stakeholders as the only beneficiaries will be the current crop of Executive Management who will be retained as Consultants. It is instructive to note that the Assets Management Company of Nigeria (AMCON) acting in its capacity as a Resolution Vehicle will take up significant shares (up to 10%) of the new entity in respect of its taking up the negative shareholding position of FinBank. In effect, existing shareholders would be left with 8% going by FCMB’s bid as against the possibility of retaining up to 39% as offered by other bidders. No serious due diligence has been conducted on FCMB and reliance is being placed on published accounts which the Central Bank of Nigeria has established do not always tell the correct story or paint the true picture.
Mrs. Iroche and her colleagues have not paid any heed to the impending massive job loss that will be the lot of the staff of FinBank for as long as their own jobs are secure albeit under another nomenclature. We therefore crave your indulgence to use your good offices to halt this manipulation of the acquisition process as the Executive Management which has been rapacious in their pillaging of the Bank has designed to make this sale their grand exit.
SOWER & MESSUARIUS SOLICITORS
K O P ODIDIKA
The Chairman, Board of Directors
1 Akin Adesola Street
cc: 1) The Group Managing Director, FinBank Plc
2) Chairman Board Strategy Committee, FinBank Plc
3) Members Board Strategy Committee, FinBank Plc
4) Governor Central Bank of Nigeria (CBN)
5) Executive Chairman, Economic and Financial Crimes Commission (EFCC)
6) The Minister of Finance
7) The Presidency