NAIJA BIZ

Stallion Group clears air on financial status

Stallion Motors has denied allegation of its poor financial status levied against it by some critics that the liquidity status of the auto merchant is healthy.

Contrary to the some reports that the firm is in bad financial shape due to loans owed some Nigerian banks and the Asset Management Corporation of Nigeria (AMCON), Group Chief Executive Officer, Anant Badjatya, claimed the company has more than N750 billion in assets and approximately N150 billion liabilities, most of which are receivable from the Federal Government, which translate into a very healthy debt to equity ratio.

“We are unable to comment further on this as the matter is sub judice. Stallion’s legal team has appropriately taken it up with the judiciary. The company has banking lines with local banks for regular business operations like all other major conglomerates in Nigeria.

“On the contrary, the organisation enjoys very good customer loyalty across businesses and has a sound financial position. It is poised for further expansion with investments across business divisions; agriculture, aquaculture, auto, flexible packaging, logistics, business solutions etc,” Badjatya said.

However, the Nigerian banks had disclosed that Stallion Group was in a very tight financial position and that though Vaswani had not shown willingness to repay the loans, the banks were willing to work with him and his companies to restructure the loan, but won’t hesitate to move for liquidation if they didn’t see any sign of cooperation from the company.

Meanwhile, stallion motors is reportedly set to celebrate 50 years of operations in Nigeria and said to have a philanthropic arm, Stallion Empowerment Initiative, which focuses on education, healthcare, low (cost) housing and youth empowerment for the community.

“Stallion Empower Initiative supports operation of two primary schools and one technical high school with 3,600 students and a 75-bed hospital and low housing public estate respectively. The Foundation recently donated N120 million to the school and hospital for the upgrade of the facilities,” Stallion Group statement said.

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