- WEMPCO has officially announced plans to divest from the Nigerian hospitality business.
- The Company says it will sell stakes in the popular Lagos Oriental Hotel.
- The Group denies claims that it is also planning to exit the Nigerian market.
Western Metal Products Company (WEMPCO), a Chinese-owned manufacturing company, has officially announced plans to divest from the Nigerian hospitality business and its stake in the popular Lagos Oriental Hotel.
The company stated this in a statement issued on Tuesday while discrediting the reports that it is planning to end its business operations 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.
On reports of plan to exit Nigeria, WEMPO said 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.
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.
The advert was also placed on a popular property listing company valued at $250 million. But the company said it did not initiate or authorise the property firm to advert to the structure.