Jul. 27, 2009 (China Knowledge) - China CAMC Engineering Co Ltd<002051> on Friday announced that it would issue up to 36 million shares to its controlling shareholder, China National Machinery Industry Corp, sources reported.

The company said in a statement filed with the Shenzhen Stock Exchange that the issuance price will be RMB 18.03 per share. However, the amount of funds to be raised through the private placement has not been disclosed.

According to the statement, the shares to be issued will have a lock-up period of 36 months and the proceeds will be used to acquire a 100% equity interest in China National Constructional & Agricultural Machinery Import & Export Corp, a subsidiary of China National Machinery Industry.

The estimated value of the equity interest is RMB 648 million.

The acquisition is expected to help China CAMC Engineering sustain profitability and reduce related party transactions.

The placement plan is still subject to approval from the company's board of directors.