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The Supreme Court of Mauritius has halted a planned US$100 million rights issue by Chappal Energies Mauritius Ltd, pending the outcome of emergency arbitration proceedings in London, in a ruling that temporarily blocks a transaction that could have significantly altered the ownership structure of the Nigerian-focused energy company.
The interim injunction, issued by Justice Carol Green Jokhoo, restrains the company’s directors from proceeding with the proposed capital raise until an Emergency Arbitrator at the London Court of International Arbitration (LCIA) determines an application for urgent relief. If emergency relief is declined, the dispute will proceed before the LCIA arbitral tribunal constituted under the company’s shareholder agreement.
The application was brought by Intermediate Investment Holdings Limited (IIHL), which owns a 34.5% stake in Chappal Energies Mauritius. IIHL argued that the proposed rights issue was initiated without its consent or the participation of its sole director, Ufoma Immanuel, who is also the founder and Chief Executive Officer of Chappal Energies.
According to the court order, the injunction was granted after the judge found the matter sufficiently urgent to warrant immediate intervention before the respondents were formally served.
The court restrained the directors of Chappal Energies Mauritius from proceeding with the rights issue pending the determination of the emergency arbitration or, if necessary, the full arbitration under the shareholders’ agreement.
The respondents include directors Victor Ohioze Imevbore, Oyinlola Hezekiah Adesola Akande, Dada Solomon Thomas, Mike Cook, Vanesh Thakurdas and Arunagirinatha Runghien. Also named in the proceedings are the Financial Services Commission of Mauritius, Chappal Energies Mauritius Ltd and Trustmoore (Mauritius) Limited.
Ownership battle
The dispute centres on a shareholder resolution passed at a special meeting on June 20, 2026, authorising a US$100 million equity raise through a rights issue.
IIHL contends that it was excluded from the meeting despite being one of the company’s largest shareholders and that the process breached the Amended and Restated Shareholders’ Agreement, which requires disputes to be resolved through arbitration.
Court documents filed before the LCIA indicate that the dispute arises under the shareholders’ agreement signed in July 2023 and amended in April 2025 between IIHL, Palisade Energies Limited, Frontier Energy Outcomes Limited, African Infrastructure Partners LLC, Kofmon Capital Investment Limited and Chappal Energies Mauritius Ltd.
The proposed capital raising emerged during the absence of Immanuel from the company’s day-to-day management while he faces criminal proceedings in Nigeria.
According to court filings, some shareholders argued that additional capital was required to strengthen Chappal Energies’ financial position and support ongoing operations.
IIHL, however, alleges that the structure of the rights issue could have enabled minority shareholder R28 Limited—an investment vehicle linked to Nigerian businessman Adebisi Adebutu—to increase its ownership to as much as 85% of the company.
The proposal reportedly included reimbursement claims for business development expenses and other conditions that some shareholders considered unfavourable.
Arbitration to determine shareholder rights
On July 1, 2026, the Supreme Court of Mauritius directed the parties to pursue arbitration before the LCIA to determine their respective rights under the shareholders’ agreement.
The LCIA has appointed Zoe O’Sullivan KC as sole arbitrator to hear the dispute.
The interim injunction remains in force while the arbitration proceeds, temporarily preventing implementation of the rights issue.
Parallel legal proceedings in Nigeria
The corporate dispute has unfolded alongside criminal proceedings involving Immanuel and IIHL in Nigeria.
The Economic and Financial Crimes Commission (EFCC) arraigned Immanuel and IIHL before the Lagos Special Offences Court on March 11, 2026, on a two-count criminal charge following a petition connected to a shareholder dispute involving entities linked to Chappal Energies.
Earlier judicial decisions had questioned aspects of the EFCC’s actions.
In September 2025, the High Court in Abuja restrained the anti-graft agency from taking further action, observing that the issues before it appeared predominantly civil in nature.
Separately, in February 2026, the Federal High Court in Lagos ruled that the EFCC’s declaration of Immanuel as “wanted” contravened the Administration of Criminal Justice Act and violated existing court orders. The court directed the commission to withdraw the publication and awarded Immanuel ₦5 million in damages for the infringement of his constitutional rights.
Despite those rulings, Immanuel was subsequently arrested and later arraigned alongside IIHL.
Implications for investors
The Mauritius proceedings represent the latest chapter in a cross-border legal battle spanning Mauritius, Nigeria and the United Kingdom over the governance and ownership of Chappal Energies.
The company holds interests in offshore oil and gas assets in Nigeria, making the outcome of the arbitration significant for shareholders, lenders and investors monitoring corporate governance and investment protection in Africa’s energy sector.
The LCIA arbitration is expected to determine whether the proposed rights issue complied with the shareholders’ agreement and whether the transaction can proceed under its current structure.
