SHANGHAI, Mar 6 China's Valin Steel Tube and Wire 000932.SZ, plans to place share

SHANGHAI, Mar 6 (Reuters) China's Valin Steel Tube and Wire , plans to place shares with its two major shareholders, including Arcelor Mittal , in exchange for taking over some of its parent's assets and to fund investment projects, the company said.

Valin will issue up to 520 million A-shares to Hunan Valin Iron&Steel Group, its largest shareholder, and Arcelor Mittal -- the world's biggest steelmaker -- at a minimum sale price of 4.47 yuan ($0.577) a share.

Valin will use the funds collected from the placement to acquire part of the steel facilities of Valin Group and invest near 800 million yuan into three projects, the company said in a statement on Tuesday.

The company said a detailed plan will be decided by the company board after the proposal gets approval from shareholders and related government bodies.

Trading in Valin's local currency A-shares listed in Shenzhen has been halted since late January. The stock last traded at 5.54 yuan, up 31 percent in January.

Mittal paid about $310 million for a minor stake in Valin in 2005.

As of September, Mittal held a 29.48 percent stake in Valin, which has a total market value of $1.56 billion. Hunan Valin Iron&Steel Group owned a 30.29 percent interest.

REUTERS CS DB1118