China's Foton gets regulatory nod for new share issue

SHANGHAI, March 12 (Reuters) - Chinese truck maker Beiqi Foton Motor Co (600166.SS: Quote, Profile, Research, Stock Buzz) said on Wednesday it has won regulatory approval for an issue of new shares.

It said the approval by the China Securities Regulatory Commission was subject to certain conditions but gave no further details. In December, the company said it would place as many as 111.2 million new shares, equal to about 12 percent of its expanded share capital, with up to 10 institutional investors at 9.88 yuan per share.

Its state-run parent, Beijing Automotive Industry Holding, would buy 40 million shares.

That followed its scrapping of a share placement plan signed in 2006 with DaimlerChrysler, which would have paid 817 million yuan ($115 million) for a 24 percent stake.

The value of Foton's Shanghai-traded shares had risen sharply after the DaimlerChrysler deal and the proposed sale failed to win government approval.

Beiqi Foton's shares rose 3.2 percent to 13.2 yuan in morning trade, compared with a 1 percent rise in Shanghai's benchmark index .SSEC. ($1=7.102 Yuan) (Reporting by Fang Yan; Editing by Edmund Klamann)