TFI shareholders told to check land sale
The Stock Exchange of Thailand (SET) urged shareholders of Thai Film Industry Plc (TFI) to obtain detailed information from its management at the company's annual shareholders' meeting in regard to a move to sell two land plots totalling 88 rai to Lakewood Land Co Ltd.
The land parcels are to be sold for only Bt140 million, while their purchase price 16 years ago was Bt216 million. The properties are currently being used as collateral for a Bt266-million mortgage with TMB Bank.TFI's annual shareholders' meeting is scheduled for April 18. The SET said TFI had earlier filed a report saying it would sell the plots, located on Suwinthawong Road, to Lakewood. For the transaction to proceed, it must obtain shareholder approval and a review by Sage Capital Ltd as an independent financial adviser.TFI bought the two plots in September 1990 for a total of Bt217 million. Both parcels have title deeds. For the shareholders' benefit, the SET provided a background summary of the transactions. It said TFI's purchase price of Bt216 million was based purely on negotiations and the market price at the time but done without appraisal from independent agencies. TFI's filing system only keeps documents going back 10 years. As a result, it could not produce supporting evidence to verify the market price at that time, said the SET. TFI acquired the land from parties connected to Prayudh Mahagitsiri, at that time TFI's managing director and major shareholder. Prayudh is now TFI chairman and CEO. He sold one plot to TFI employee Wichien Intawin on September 26, 1990. Wichien then resold it to TFI the following day. The second plot that TFI bought was acquired from Rachadachai Co Ltd on September 27, 1990. Prayudh also holds an interest in Rachadachai. The SET said TFI intended to sell the parcels for Bt140 million. Bangkok Property Appraisal Co Ltd says the property carries an appraisal value of almost Bt142 million. TFI has also mortgaged the land at a value of Bt266 million with TMB Bank. As of February 28, TFI had an obligation to honour US$6 million (Bt232 million) in promissory notes. However, Lakewood has agreed that TFI can continue to use the properties as collateral until its debt obligation is repaid, which should be in three years from the time of transfer during this second quarter. - The Nation
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