PTT Plc (PTT), the country’s largest oil conglomerate, has informed the Stock Exchange of Thailand that it plans to buy a 20% stake in Independent Power (Thailand) (IPT), one of Thailand’s leading independent power producers. The deal is said to cost 396 million baht, according to the Business Day. (US$1=40 baht).

PTT said its shareholders have approved the plan to buy the IPT from Germany’s Siemens, with the expectation that it will yield an annual return of between 17.7 and 20.3%.

PTT will buy 35.42 million IPT shares at 11.29 baht a share.

“Buying the stake is a low investment risk since IPT will supply electricity to the Electricity Generating Authority of Thailand [Egat] for a period of 25 years,” PTT said.

IPT has a total paid-up capital of 1.77 billion baht and its accounting share price value is set at 24.73 baht apiece. After the deal, Thai Oil Power will hold 56%, Unocal Asia and Pacific Ventures will hold 24% and PTT Ð 20