Embattled Pacific Assets Plc (PA) will sell an empty land plot of 21 hectares and transfer the lessee's rights in another empty land plot, both on Koh Samui, for Bt1.18 billion to Lehman Brothers (Thailand).

The purchase is subject to obtaining a certificate from the Board of Investment, consent from the lessor of the leased land and the buyer's satisfaction with the result of assets due diligence, Pacific Assets told the Stock Exchange of Thailand yesterday.

"If the above conditions cannot be fully satisfied within 90 days of the agreement's signing date, the company and the purchaser will terminate the sale agreement," the company said.

As of June 30, the book value of the disposed assets (land and lessee's rights over land) was Bt647.5 million, while Thai Property Appraisal Lynn Phillips Co Ltd, an independent appraisal company, evaluated only the 21-hectare land plot at about Bt655 million on June 16.

Pacific Assets said it would use the proceeds from the sale for working capital, settling debts with financial institutions and investing in new business opportunities in the future.

The company said it would have more working capital and greater financial stability after the transaction.

Pacific Asset shares closed up 1.96 per cent yesterday at Bt5.20.

Last year, Lehman Brothers acquired the assets and operations of two luxury vacation resorts, two office buildings and a serviced apartment from Pacific Assets for Bt3.2 billion.

The properties were Pantip Court Executive Residence Hotel, 1 Pacific Place and 2 Pacific Place, all in Bangkok; Le Royal Meridien Bann Taling Ngam on Koh Samui; and Le Royal Meridien Phuket Yacht Club in Phuket.

As well, Pacific Natural Park Plc - Pacific Assets' major shareholder - sold Novotel Panwa Beach Resort in Phuket, plus a 49-per-cent stake and debt claim in its Siri Phuket joint venture, to Lehman Brothers for a total of Bt750 million.

Earlier, Dusit Thani Plc's planned acquisition of a major stake in Pacific Assets collapsed.

Pacific Assets recorded a second-quarter net profit of Bt52.72 million, compared with a net loss of Bt92.2 million in the corresponding period last year.

This resulted in a first-half net loss of Bt27.93 million for the company, an improvement over its Bt95.35-million net loss in the first half of last year.