Deap Capital Management Clarifies Rumour on AMCON’s Takeover
Deap Capital Management & Trust Plc clarifies the news item from various online sources, especially The Cable, dated 9 July 2020, and captioned “AMCON takes over assets belonging to Deap Capital-sixth seizure in 21 days”
The Company hereby makes the following clarifications:
- 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 N1.6 Billion.
- The indebtedness arose from the Corporations purchase of eligible bank assets.
- The Corporation instituted an action against the Company in the Federal High Court, Lagos and judgment were delivered on January 28, 2015.
- The Corporation had judgment awarded in its favour in the above suit.
- Pursuant to the judgment, the Corporation instituted recovery processes against the Company.
- The Corporation recently secured a Court Order to attach the assets of the Company’s former directors.
- 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 Company is resolving its indebtedness to 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 Company’s Board of Directors is committed to resolving all issues.
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