HONG KONG, Feb 3 Dongfang Electrical Machinery Co. Ltd. is looking to buy a 68.05 percent

HONG KONG, Feb 3 (Reuters) Dongfang Electrical Machinery Co. Ltd. is looking to buy a 68.05 percent stake in Dongfang Boiler Group Co.

and all of Dongfang Turbine from their combined parent firm, the company said.

In a statement published on the Hong Kong stock exchange Web site late on Friday, the Chinese power gear maker said it hoped to buy the stakes in the two firms from controlling shareholder Dongfang Electric Corp. following a state share reform at Dongfang Boiler.

''The total value of the shareholding of approximately 68.05 percent in Dongfang Boiler and the entire equity interest in Dongfang Turbine amounts to approximately 11.9 billion yuan ($1.53 billion),'' the statement said.

But it added the actual purchase price of the assets would be determined by an audit and valuation of the firms, which it expects to be completed by the end of March.

Dongfang Electrical said it proposed to issue 367 million A shares at 24.17 yuan each and make a deferred cash payment for the remainder. This would raise the parent company's stake in Dongfang Electrical to almost 70 percent from 45.29 percent now.

''The exact number of shares to be issued and the amount of deferred cash payment payable by the company to Dongfang Electric Corp. will be determined upon completion of the relevant audit and valuation,'' it said.

Dongfang Electrical said trading of its shares in Hong Kong and Shanghai, which has been suspended since last year, will resume on Monday.

REUTERS CS ND1211