Archlight Nigeria Limited has denied the claims that it transferred over 50 percent of its equity shares in the Ibadan Electricity Distribution Company (IBEDC) to 86 Gardens Limited. The company described the allegations as false and misleading.
In a statement released by its legal consultant, Jesuyemisi Odeyemi, Archlight said it legally acquired 60 percent of IBEDC shares in 2024 through a transparent and competitive bidding process organised by the Asset Management Corporation of Nigeria (AMCON). The shares were sold after AMCON took over IBEDC due to unpaid debts.
Archlight explained that 86 Gardens, through its investment arm Africa Plus Partners Nigeria Limited, was one of the bidders in the AMCON process but did not meet the necessary requirements. As a result, it was named the reserved bidder and not the preferred one.
After Archlight was announced as the winner, 86 Gardens reportedly reached out to some of Archlight’s shareholders, seeking to become a co-investor—not a direct shareholder in IBEDC. An agreement-in-principle was later reached and placed in escrow, pending the fulfilment of certain conditions, including the full payment of agreed fees for the share transfer.
However, Archlight stated that 86 Gardens failed to meet its financial obligations despite several deadline extensions. Because of this, the co-investment proposal collapsed, and the concerned Archlight shareholders lawfully sold their shares to other investors in August 2024.
According to Archlight, 86 Gardens later began to insist it should be recognised as a shareholder in Archlight, even though it never paid for the shares. In a bid to resolve the matter, the custodian of the escrow documents arranged a meeting with all parties. At that meeting, Archlight said it was willing to revisit a co-investment plan if all shareholders agreed. 86 Gardens reportedly accepted and promised to get back within a week.
But instead of returning with a final agreement, Archlight said it was surprised to find that 86 Gardens had filed a lawsuit at the Federal High Court in Abuja, challenging Archlight’s status as the preferred bidder. This suit, according to the company, was dismissed by the court on October 21, 2024, shutting the door on any possible business partnership between the two parties.
Archlight added that the documents 86 Gardens is using to back its claims were clearly labelled as conditional, based on full payment and a supplementary agreement—which 86 Gardens never fulfilled. The company accused 86 Gardens of abusing the judicial process by getting an ex parte court injunction to stop share transfers and frustrate the legal business deal.
Archlight also said it has not yet been served with any legal papers regarding the new suit filed by 86 Gardens. However, the company stressed that it would take every legal step necessary to protect its name and rights.
The matter is currently in court with a hearing date set for May 16, 2025, at the Federal High Court in Lagos. The suit is marked FHC/L/CS/418/2025. The second and third defendants in the case are a senior lawyer, Abiodun J. Owonikoko (SAN) of Synergy Attorneys, and the Corporate Affairs Commission (CAC).
Archlight maintained that it remains the rightful and unchallenged owner of 60 percent of IBEDC shares and warned against further attempts to disrupt a valid transaction that followed all legal and regulatory procedures.
