BEIJING, March 27 (Reuters) - China-based Ninestar Corp

plans to sell printer and printing software maker

Lexmark International II to Xerox in a deal with an

equity value of up to $150 million.

Ninestar said in an exchange filing on Wednesday that it has

estimated the transaction price, using the equity value, to

range from $75 million to $150 million, based on Lexmark's

latest operational status.

Xerox said last December it had agreed to buy Lexmark in a

deal with an enterprise value of $1.5 billion, including assumed

liabilities from Ninestar, private equity firm PAG and Shanghai

Shouda Investment Centre, to expand its presence in Asian

markets.

In a December stock exchange filing, Ninestar said that the

transaction price was calculated based on the $1.5 billion base

figure, the company's adjusted net operating capital, and

estimated cash on the transaction day, with Lexmark's debt and

transaction fees deducted from the total amount.

Formed out of IBM in 1991, Lexmark was sold to a group of

Chinese investors in a $3.6 billion deal in 2016. The deal would

bring Lexmark back to U.S. ownership.

Xerox had expected the deal to immediately aid profit and

deliver more than $200 million in annual cost savings, including

by helping cut marketing and real estate expenses, the December

announcement showed.