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WEMPCO, owners of Lagos Oriental Hotel debunk exit rumour

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WEMPCO, owners of Lagos Oriental Hotel debunks exit rumour

The Western Metal Products Company (WEMPCO), owners of Lagos Oriental Hotel has debunked claims that it is planning to end its business operations in the country.

The company said despite the challenging business environment, its proposed divestment from Lagos Oriental Hotel was purely a business decision.

K.F. Tung, who founded WEMPCO Group of Companies reportedly passed away on March 27, 2019, fuelling reports that the company might end its over 50 years sojourn in Nigeria.

In a statement on Tuesday, the company said media reports to the contrary were rumours and false.

The company said: “While K.F.’s presence and guidance will be missed, both the Tung family and everyone at the WEMPCO Group of Companies remain fully committed to contributing to the ongoing growth and development of Nigeria.

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“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.”

On the controversy surrounding Oriental Hotel, the company said, “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.”

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