China's Qilianshan Cement to sell shares to CNBM

SHANGHAI, March 17 (Reuters) - China's Gansu Qilianshan Cement Co (600720.SS: Quote, Profile, Research, Stock Buzz) said on Monday it would place 50 million new shares with larger rival China National Building Material Co (3323.HK: Quote, Profile, Research, Stock Buzz) in a deal that official media valued at 493 million yuan ($69.5 million).

The move would help the firms' joint effort to consolidate the cement market in northwest China, Gansu Qilianshan said in a statement.

It did not disclose the price of the share placement but the Securities Times put the figure at 9.86 yuan per share.

The placement is part of Qilianshan's plan to issue up to 150 million new shares -- equivalent to nearly 20 percent of its enlarged share capital -- to no more than 10 institutional investors. The company first unveiled the plan in January 2006. ($1=7.090 Yuan) (Reporting by Fang Yan; Editing by Edmund Klamann)