BEDC challenges the takeover of BPE and plans arbitration in the United Kingdom

• Wife of ex-British Prime Minister Blair Olanipekun leads the Disco team

Benin Electricity Distribution Company Plc took the Bureau of Public Enterprises, a federal government agency, to arbitration in the UK to challenge the takeover of BEDC by Fidelity Bank Plc.

It was also discovered on Monday that the wife of the former Prime Minister of the United Kingdom, Cherie Blair, who is chairman of Omnia Strategy LLP, and Bode Olanipekun, of Wole Olanipekun & Co., led the BEDC legal team.

Last month the federal government announced plans to take over the Kano, Benin and Kaduna electricity distribution companies from Fidelity Bank Plc after the bank took steps to take over the boards administration of the three Discos.

He also announced through the BPE that with the takeover of Ibadan Disco by the Asset Management Corporation of Nigeria, the office had obtained NERC approval to appoint a Managing Director acting for the ailing electric company.

The government had further said in its restructuring notice that it was restructuring the management and board of Port Harcourt Disco to prevent the utility's impending insolvency. The notice was signed by the Managing Director, BPE, Alex Okoh; and Executive Chairman, NERC, Sanusi Garba.

Last week, The PUNCH reported that legal advisers to Vigeo Power Limited, majority shareholder of BEDC, had initiated contempt proceedings against the BPE, describing the office as defaulters involved in the illegal takeover of the Disco.

This came as a document from Omnia Strategy LLP, seen in Abuja on Monday, and addressed to Managing Director, BPE, Alex Okoh, said the office's inappropriate action was in the commercial interests and VGL's reputation to suffer through the forceful takeover of BEDC.

The document, dated July 14, 2022, and made available to our correspondent by an irreproachable source, was entitled "Dispute Notice Under the Shareholders' Agreement between Vigeo Power Limited and the Bureau of Public Enterprises . ” It was signed by Cherie and Olanipekun.

It read in part as follows: "Omnia Strategy LLP and Wole Olanipekun & Co are appointed on behalf of Vigeo Power Limited. As you know, VPL is the majority shareholder of BEDC Electricity Plc.

"Our client's business interests and reputation have recently suffered and continue to suffer material harm as a result of improper actions to expropriate our client's interests in BEDC, through the attempted forced takeover of BEDC, and allegedly initiated by Fidelity Bank Plc and facilitated by the Federal Government of Nigeria, through your good self (Okoh) and the Office of Public Enterprises.

“Consequently, we are writing to you pursuant to Article 16.2 of the shareholders' agreement dated August 21, 2013 between the BPE, the Incorporated Ministry of Finance, BEDC and our client to notify you the existence of a dispute."

He added: "We hereby give notice of our intention to initiate international arbitration proceedings if the dispute is not resolved within 10 days of receipt of this letter. We expect BPE to cease and refrain from any other action that could directly or indirectly risk damaging or implicating VPL."

The law firm said it required the BPE to cooperate with its client and do its best to reverse recent actions that had compromised VPL's interests in BEDC, as briefly outlined below -below.

“In publications dated 5 and 8 July 2022, BPE and the Nigerian Electricity Regulatory Commission announced that (i) Fidelity Bank, as a lender to certain electricity distribution companies, including BEDC, had informed BPE that he had launched an action to take back the boards of the Discos; and (ii) pending the takeover, BPE and NERC had jointly appointed interim chief executives, chairmen and other non-executive directors for the affected Discos,” the company said.

He added: "With regard to BEDC, our client regrets that BPE has facilitated the harm to the interests of our client, in particular through the alleged reconstitution of the board of directors of BEDC.

"BPE, as holder of 40% of the issued share capital of BEDC, is aware, or reasonably should be aware, that: our client's shares in BEDC are unencumbered by favor of Fidelity Bank or any other person;

“Fidelity Bank has no legal or contractual basis to interfere in the governance, management and operations of BEDC; The alleged security relied upon by Fidelity Bank is the subject of ongoing litigation in Case No. FHC/L/CS/239/2022 VPL Holdings Limited and 4 Ors v.

Stanbic IBTC Bank & 7 Ors.”

The law firm said that with the suit pending judicial review, Fidelity Ban...