Western Metal Products Company (WEMPCO), a Chinese-owned manufacturing company, has officially announced its intention to sell off its shares in the popular Lagos Oriental hotel.
The company said this in a statement released Tuesday while discrediting reports that it plans to end its commercial activities in Nigeria.
According to the statement, WEMPCO said Lagos Oriental Hotel was not part of its core manufacturing business plan and divesting from it was a commercial decision.
“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,” the statement reads.
Last week, reports emerged that WEMPCO, the majority shareholder in the Oriental Hotel in Lagos, is planning to sell the hotel at N94bn ($250m) and exit Africa’s biggest economy.
On reports of their plan to exit Nigeria, WEMPO explained that it remains fully committed to the Nigerian market and will contribute to the on-going growth and development.
Despite the challenging business environment, WEMPCO is committed to and had “unshakeable” faith in the resilience of the economy, as it has had for over 50 years, the company said.
WEMPCO Group of Companies was founded by businessman and entrepreneur K.F. Tung over 50 years ago. The company said Tung passed away at the age of 97, less than two months ago.
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