Deap Capital denies reports of takeover by AMCON 

Deap Capital Management & Trust Limited Monday debunked reports that the Asset Management Corporation of Nigeria (AMCON) had taken possession of its assets over indebtedness totalling about N1.6 billion.

Last week, various news reports stated that AMCON had sequestered the financial services company’s properties on the ground of its failure to settle the debt accruing from the corporation’s purchase of banks’ toxic assets.

“The Asset Management Corporation of Nigeria (AMCON or the corporation) holds a significant equity stake in the company.

“The corporation holds about 20% equity stake in the company. The company is indebted to AMCON. The indebtedness stands at about N1.6billion,” Deap Capital said in its clarification note to the Nigerian Stock Exchange, signed by Yetunde Fashesin-Souza, Company Secretary.

It went further to mention that AMCON had a court order lately to confiscate the assets of its company’s former directors, meaning the properties in question are not those of the company.

Read also: AMCON’s pioneer CEO becomes Fidelity Bank’s chairman

“The assets as described by the aforementioned news item, and referenced by a Press Release from AMCON are the assets of one of the company’s former directors attached to the judgment,” the document says.

AMCON had declared in an earlier statement that it had taken control three properties situated at 75 Femi Kila Street (now renamed 75, Oba Kabiru Agbabiaka Street) Okota, Lagos, 79, Femi Kila Street (now renamed 75, Oba Kabiru Agbabiaka Street) and 38, Dele Orisabiyi Street, Okota-Isolo, Lagos belonging  to Emmanuel Ugboh, the chief promoter of Deap Capital.

The state-owned firm has been on an asset recovery binge in recent weeks with the seizure of the assets of oil and gas firm, Pan Ocean Oil Corporation limited for an accumulated credit of N240 billion numbering among its repossession efforts.

“The company is resolving its indebtedness with AMCON. The company is working with its stakeholders to ensure its return to profitability. The company is resolving its operational challenges most notably the recovery of its operational licenses,” the Deap Capital note says.

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