China's AJ Corp plans $380 mln share placement

SHANGHAI, Aug 12 (Reuters) - AJ Corp (600643.SS), a Shanghai-based financial investment firm, said on Wednesday it planned to raise 2.6 billion yuan ($380 million) in a private placement to acquire two property companies under the Shanghai International Group.

The Shanghai International Group, the investment arm of the Shanghai government, will subscribe for the shares in the placement. The troubled AJ Corp has been seeking a partner to help it restructure since 2004.

AJ said it planned to issue about 214 million shares to the Shanghai International Group to buy entire stakes in the two property developers. The additional shares will be priced at 12.21 yuan apiece.

The plan has obtained preliminary approval from government departments in Shanghai and will next be reviewed by the China Securities Regulatory Commission, the country's securities watchdog, AJ said.

After obtaining approval for the $380-million placement, AJ said it plans to issue 700 million yuan worth of news shares in another placement to the Shanghai International Group to boost the capital of its trust unit, the company said. ($1=6.834 Yuan) (Reporting by Alfred Cang and Jacqueline Wong)