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

plans to sell printer and printing software maker

Lexmark International II to Xerox in a deal estimated at

up to $150 million, a fraction of the price Xerox disclosed in

December.

Ninestar said in an exchange filing on Wednesday that it has

estimated the transaction price 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 valued at $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.