Lagos lawyer, Mr. Femi Ojumu, has branded the attempted takeover of pharmaceutical retail outfit, HealthPlus, by a United Kingdom private equity firm, Alta Semper Capital, as immoral.
Ojumu in a statement in Lagos, yesterday, in reaction to the forcible take over, which has been widely condemned by Nigerians, said the attempted takeover had the potential of causing loss of jobs by staff of HealthPlus.
“I have to say it’s morally wrong. I have an interest in this matter, as HealthPlus has createsd direct and indirect employment for almost 1,000 Nigerians. l also can’t see why foreign private equity investors will renege on an investment agreement and seek to tarnish the hard-earned reputation of a successful brand. It is not acceptable,” he said.
The five-year investment agreement between Alta Semper and HealthPlus, signed in 2018, was to enable the pharmaceutical retail giant expand its operations with funds from the foreign firm, which was to have majority stake. The agreement, however, broke down, following the equity firm’s refusal to release funds as agreed, resulting in hindrance for the expansion drive.
The development led HealthPlus to file a suit at the Federal High Court (FHC/L/CS/609/2020) seeking to stop the foreign firm from withholding funds, interfering with the functions of key employees, corporate governance abuse and attempting to sack the CEO. Despite obtaining a motion on notice restraining Alta Semper from forcible takeover, the equity partner, on Saturday, announced that it had sacked HealthPlus CEO and founder, Mrs. Olubukola George, in a letter to the Pharmaceutical Council of Nigeria.
HealthPlus, in a statement the same day, described the announcement as illegal. On Friday, Alta Semper’s had representatives attempted to seize the company without a board resolution and approved minutes of the board meeting that approved their action. The equity partner also sought to take over HealthPlus’ finances by contacting its bankers and payment systems service provider, but met a brick wall as it had neither a board resolution nor approved minutes of the board meeting authorising a takeover. Sources close to Alta Semper claim that the equity firm owns 95 per cent stake in HealthPlus, but the company’s list of shareholders shows that Mrs George owns 923,974 ordinary shares (46.2%) while Idi Holdings (Alta Semper) owns 1,076,026 ordinary shares (53.8%) of HealthPlus Africa Holdings, the parent company of HealthPlus (Nigeria) Limited.