The embattled Natural Park Plc is expected to gain about Bt1.2 billion from the sale of assets this year that it will use repay some of its Bt6-billion debt.

The company plans to sell assets from three of its eight current projects, managing director and chief executive officer Sermsin Samalapa said after a meeting of shareholders yesterday.

He estimated that the sale of the Niwa Hotel in Kyoto would generate around Bt500 million and the sale of the Sofitel Hotel Sukhumvit about Bt360 million.

Sermsin said the company also expected to receive about Bt300 million from the sale of 245.86 million shares of Bangkok Metro Plc at Bt1.31 each to Maha Siri, a major shareholder of the subway operator and Ch Karnchang Plc.

"The company will use the proceeds from a series of asset sales to repay the company's and Pacific Assets Plc's [Natural Park's subsidiary] Bt6 billion in debts. Half of those debts belong to Siam City Bank and Krung Thai Bank and rest are revolving debts," said Sermsin.

"If the company can sell assets, its burden will be reduced and its financial position will be strengthened."

He added that the company was concentrating on lowering its debts amid higher interest rates and the present economic uncertainty.

At yesterday's meeting, Natural Park's shareholders eventually approved the sale of the Bangkok Metro shares at Bt1.31 each - below the Bt1.52 they were bought for - though some shareholders voted against the sale and called for the company's management to sell other assets instead.

After the sale, Natural Park will still hold 820 million Bangkok Metro shares. The company will ask the Stock Exchange of Thailand (SET) not to enforce a 'silent period,' under which it would be prohibited from selling more of the shares in the near future.

Sermsin said he expected the SET to approve Natural Park's petition. If it does, the company will sell the remaining shares through a big-lot sale that would prevent the share price being affected. However, Sermsin said such a sale would only go ahead if the shares were being sold for at least Bt1.52 each.

Aside from selling the Bangkok Metro shares and the Niwa and Sofitel Sukhumvit hotels, Natural Park's board recently decided to sell Novotel Panwa Beach Resort Hotel and a 40-per-cent stake in Siri Phuket - a Phuket property development - to Lehman Brothers (Thailand) for Bt750 million.

Natural Park is expected to suffer a loss over the next two years before current projects begin generating income. Its second-quarter net losses increased to Bt210.18 million, up from Bt197.01 million from the same period last year.