The ongoing dispute over the ownership and control of Emerging Markets Telecommunication Service (EMTS) took a new twist last Tuesday when the Federal High Court sitting in Abuja resumed hearing of the suit. EMTS is the holder and operator of 9Mobile Telecommunication licence.

At the resumed hearing, Keystone Bank brought a motion seeking to be joined as a party to the suit. The bank also filed a proposed statement of defence and counter-claim to demonstrate its interest in the subject matter of the suit.

The Bank counterclaims inter alia that the resolution of the 5th defendant passed on 7th December, 2023, increasing the share capital of the 6th defendant to counterclaim from N90,000,000 to N2,000,000,000 and reducing the 3rd defendant’s percentage stake/interest/shareholding in the 6th defendant to counterclaim to approximately 4.5% is null and void.

The Plaintiff, Abubakar Isa Funtua, had dragged General Theophilus Yakubu Danjuma (Rtd) and his company LH Telecommunication Limited, as well as the other Defendants to court over the ownership and control of Emerging Markets Telecommunications Limited, trading under the name of 9Mobile.

The other Defendants in the suit are Seltrix Limited (1st Defendant); Corporate Affairs Commission; Nigerian Communications Commission (NCC); Hayatu Hassan Hadeija; Teleology Nigerian Limited and one Mohammed Edewor, a Director in Teleology Nigeria Limited.

At the resumed hearing of the case, the parties were confronted with the joinder motion by Keystone Bank which also alleged fraud against some parties in the suit No. ABJ/CS/1971/2024.

The motion states inter alia that “The applicant – Keystone Bank, also intends to present a Counter Claim and has prepared a proposed statement of defence and counter claim which discloses triable and fecund issues and also demonstrates applicant’s interest in the subject of this suit. The case of the applicant is that the resolution passed by the 3rd defendant on 9th May, 2023 approving the change of control/ownership of the 5th defendant from the 3rd defendant to the 8th defendant, in violation of the facilities agreements (Deed of Share Charge) between the applicant and 3rd defendant, and the orders of the court made on 20th February, 2023 in Suit No. FHC/L/CS/297/2023 is illegal, null and void.

“The case of the applicant, as set out in the proposed statement of defence and counterclaim, is that the resolution passed by the 3rd defendant on 9th May, 2023 approving the change of control/ownership of the 5th defendant from the 3rd defendant to the 8th defendant, in violation of the facilities agreements (Deed of Share Charge) between the applicant and 3rd defendant, and the orders of the court made on 20th February, 2023 in Suit No. FHC/L/CS/297/2023 is illegal, null and void.

“The applicant also asserts in the proposed statement of defence and counterclaim that the resolution of the 5th defendant passed on 7th December, 2023, increasing the share capital of the 6th defendant to counterclaim from N90,000,000 to N2,000,000,000 and reducing the 3rd defendant’s percentage stake/interest/shareholding in the 6th defendant to counterclaim to approximately 4.5% is null and void.

“The applicant intends to seek the following reliefs, endorsed on the proposed statement of defence and counterclaim, at the hearing of the case:

“A DECLARATION that the 1st defendant to counterclaim is not a shareholder, either directly or indirectly, of the 6th defendant to counterclaim.

“A DECLARATION that the interest or stake (if any) of the 1st defendant to the counterclaim in the 6th defendant to the counterclaim (through any or all of the 2nd – 4th defendants to the counterclaim) is subject to the rights and interest of the counterclaimant arising from the facilities agreements between the counterclaimant and the 4th defendant to the counterclaim.

“A DECLARATION that the resolution of the 4th defendant to counterclaim passed/dated 9th May, 2023 purportedly approving the change of control/ownership of the 5th defendant from the 3rd defendant to the 8th defendant is In violation of the Deed of Share Charge between the counterclaimant and the 4th defendant to counterclaim and therefore illegal, unlawful, null and void.

“A DECLARATION that the consent/approval granted on 26th May,2023 by the 3rd defendant/4th defendant to counterclaim (under the hand of the 4th defendant/5th defendant to counterclaim) in respect of the investment of the 8th defendant in the 5th defendant, leading to a reduction of the 99.99% shareholding of the 3rd defendant in the 5th defendant to less than 4.5% is illegal, unlawful, null and void among other reliefs.”

The Bank also seeks “AN ORDER OF PERPETUAL INJUNCTION restraining the defendant to counterclaim from altering or taking any step to alter or give effect to the alteration or continuing to give effect to the alteration of the 99.9% beneficial ownership of Teleology Nigeria Limited in Emerging Markets Telecommunication Service Limited (EMTS) among other reliefs.”

The matter was adjourned for hearing of all preliminary objections.