The bourse said TFI had planned to sell the land for Bt140 million, compared to the Bt216 million it had paid for the property 16 years ago. TFI is using the property as collateral for a Bt266-million loan from TMB Bank.

TFI told the SET that on Tuesday the buyer, Lakewood Land, had verbally informed TFI that it had reconsidered the purchase and had decided that it would not need the land for commercial purposes. It was, in fact, buying the land to enhance its financial status.

TFI said Lakewood would have allowed it to continue using the land to the TMB Bank loan until TFI completely repaid the loan and the pledge on the land was released. Also, Lakewood had accepted to continue a rental agreement with Quality Coffee Products Co Ltd - the previous owner of the land - up until the lease expiration on November 30, 2007.

"These terms and conditions were not regarded as favouring Lakewood at all," TFI said in its statement to the stock exchange, "so Lakewood decided to cancel its intention to purchase the plots of land."

TFI first acquired the land from parties related to Prayudh Mahagitsiri, then its managing director and majority shareholder. Prayudh is now TFI's chairman and chief executive.

Prayudh sold a plot to Wichien Intawin, an employee of TFI, on September 26, 1990. Wichien then sold it to TFI the following day.

TFI bought a second plot from Rachadachai Co Ltd on September 27, 1990. Prayudh also held an interest in Rachadachai, which had the same set of directors and shareholders as TFI.

Rachadachai originally bought the plot from Quality Coffee Products in November 1989.