Former CEO Files Lawsuit Over Equity Dispute in PAT Acquisition
A legal battle has emerged over the 2023 acquisition of Pan African Towers (PAT), as Azeez Amida, the company’s former Chief Executive Officer, has filed a shareholder rights lawsuit against private equity investors Development Partners International (DPI), Verod Capital, and their affiliated entities.
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The suit, currently before the Federal High Court in Ikoyi, Lagos (Suit No. FHC/L/MISC/608/2025), alleges a breach of a pre-agreed equity commitment stemming from a management buy-out (MBO) led by Amida.
Court Orders Parties to Maintain Status Quo
At a recent hearing presided over by Justice Aluko, the court directed all parties to maintain the current state of affairs and honour all pending applications. This includes a motion for interlocutory injunction aimed at preventing DPI and Verod Capital from selling or transferring their stakes in PAT Holding Limited, the investment vehicle used in the acquisition.
Plaintiff’s counsel, Emeka Ekweozor and Ukamaka Ali, informed the court that the motion was filed on 19 July 2025, and that the defendants had responded with a preliminary objection on 8 August 2025. The plaintiff is seeking a consolidated hearing of both applications.
Equity Agreement at the Heart of the Dispute
Amida’s legal team argues that DPI and Verod entered into the MBO on the basis of a term sheet that guaranteed the former CEO a 5% equity stake in PAT. The document, submitted as part of the court filings, is said to have been central to the investment deal.
Appointed CEO in 2022, Amida claims he turned the financially struggling PAT around by increasing revenue from ₦10 billion to ₦15 billion, boosting EBITDA from ₦4 billion to ₦6.5 billion, and reducing company liabilities—all within a year.
According to the lawsuit, DPI and Verod were brought into the deal by Amida himself as preferred investors to support a locally led MBO. His legal team claims the agreed equity stake was never issued to him, despite several post-acquisition meetings and assurances.
Allegations of Bad Faith and Non-Compliance
In November 2024, Amida was dismissed as CEO. He claims that, by that time, PAT’s financials had significantly improved, and his contributions had created substantial value for the investors. However, his repeated demands for the equity stake—described as “promised and contractually binding”—were allegedly denied.
The lawsuit seeks either the transfer of Amida’s 5% equity in PAT or its monetary equivalent, in addition to damages for breach of agreement.
Next Court Date Set for January 2026
The matter has been adjourned to 15 January 2026, when the court is expected to consider both the motion for injunction and the preliminary objection in a consolidated hearing. A substantive hearing may also begin depending on the court’s direction.