The management of the Western Metal Products Company (WEMPCO) has responded to reports in publications – notably BusinessDay of May 1, 2019 and Punch of May 3, 2019 – concerning the proposed sale of the Lagos Oriental Hotel.
The company said categorically that “there has never been and there is no intention of the WEMPCO Group to exit Nigeria as stated in the reports”.
It said the Lagos Oriental Hotel “is a flagship in the Nigerian hospitality business but is not a flagship of the WEMPCO Group” and that divesting in the asset “would simply be a commercial decision based on the merits of a reasonable transaction”.
“Ordinarily, we would not directly respond to such reports as we do not conduct our business activities on the pages of newspapers. However, in this case, we deem it important to clarify some rumours surrounding the Group and to correct some inaccuracies and falsehoods contained in the report,” WEMPCO said.
The company said the WEMPCO Group of Companies was founded by businessman and entrepreneur, K. F. Tung, over 50 years ago.
“It is with heavy heart that we announce the passing of Mr. K. F. Tung who died peacefully on 27th of March, 2019 surrounded by his family at the age of 97. He first visited Nigeria in 1967 and soon began businesses in enamelware before venturing into steel, timber, ceramic, and real estate industries. Under his leadership, WEMPCO flourished and has supplied much of Nigeria’s construction materials through the burgeoning economy throughout the years,” it said.
WEMPCO said the Group has without doubt contributed immensely to the Nigerian economy in particular and that of West Africa in general.
“While K. F.’s presence and guidance will be missed, both the Tung family and everyone at WEMPCO Group of Companies remain fully committed to contributing to the on-going growth and development of Nigeria.
“We must hereby categorically state that there has never been and there is no intention of the WEMPCO Group to exit Nigeria as stated in the reports. Our Group has been in Nigeria for several decades and has witnessed many cycles of the Nigerian economy. Although the Nigerian economy faces tough times, our firm belief in the resilience of the Nigerian economy remains unshaken and we will continue to develop alongside Nigeria for many decades to come.
“The Lagos Oriental Hotel is a flagship in the Nigerian hospitality business but is not a flagship of the WEMPCO Group. It is an investment made by the Group in 2008, but not part of our core manufacturing business. Although the recent spate of advertisement of the Hotel was not initiated or authorised by our Group, to divest in the asset would simply be a commercial decision based on the merits of a reasonable transaction.
“Contrary to claims in the reports that the WEMPCO Group had relied on Federal Government waivers, the Group has never received special concessions outside of those extended to industries as a whole,” WEMPCO stated.
ISRAEL ODUBOLA
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