A Federal High Court in Lagos has granted Lekoil Nigeria an injunction against Lekoil Limited and Savannah Energy Investments Limited, a subsidiary of Savannah Energy Plc in a suit marked FHC/L/CS/621/22.
Justice Yellim Bogoro granted the interim order on April 4, 2022, following the plaintiff/applicant’s application through its counsel Bode Olanipekun SAN, with Adeola Akinyemi.
The court restrained Lekoil Limited and Savannah Energy Investments Limited from taking any steps in furtherance of the transfer of any interests in oil and gas assets of Lekoil Nigeria Limited and the transfer or creation of any interest in Lekoil Nigeria Limited, that will alter the ownership, equity or share capital structure of Lekoil Nigeria Limited.
Lekoil Nigeria is joined as plaintiff/applicants in the suit by a number of third parties including Lekoil Oil & Gas Investments Limited, Mayfair Assets & Trust Limited, Lekoil 276 Limited and Lekoil Exploration & Production Nigeria Limited.
The injunction subsists pending the hearing of the Motion on Notice for injunction dated April 4, 2022, the court held.
The injunction followed an announcement on February 28, 2022, by Lekoil Limited that it had entered into an agreement with Savannah Energy Investments Limited, a subsidiary of Savannah Energy PLC, Lekoil Nigeria Limited.
In the ruling, a copy of which was seen by The Nation, the court granted all the four reliefs sought by the plaintiff/applicant.
The judge adjourned further proceedings till June 1, 2022.
Lekoil Nigeria reacted to the ruling in a statement.
It said: “Accordingly, the following resolutions to be voted on at the forthcoming Extraordinary General Meeting convened by Lekoil Limited for Thursday 7th April 2022 have been injuncted by the order of the Federal High Court of Nigeria:
“Approving the Option Agreement entered into with Savannah Investments, in accordance with the requirements of Rule 15 of the AIM Rules.
“Authorising the Directors to allot and issue fully paid ordinary shares up to an aggregate number of 151,755,547, which is approximately 20 per cent (20%) of the Company’s current issued ordinary share capital.
“The Board of Lekoil Nigeria is delighted that the injunction has been granted, prohibiting a substantially dilutive issuance of equity and an option agreement with Savannah Energy Investments Limited which would have denied shareholders of significant value.”