September 4, 2017 / 4:01 PM / in a year

UPDATE 1-Steinhoff offers investors up to 23 pct of African unit

(Adds detail)

JOHANNESBURG, Sept 4 (Reuters) - South African retailer Steinhoff International is offering investors up to 23.2 percent of its African arm, Steinhoff Africa Retail (STAR), which it aims to list on the Johannesburg stock market on Sept. 20, the company said on Monday.

With STAR, Steinhoff lumps food, clothing and furniture chains together to create a listed African retailer, with a controlling stake in grocer Shoprite its most valuable asset.

The offering, in a private placement to invited investors, has been priced at between 18 and 23 rand per share, valuing the newly listed company at between 62 and 79 billion rand ($4.8-6.1 billion).

“The listing will be accompanied by a capital raising through a private placement in order to establish the public shareholding spread and liquidity required by the JSE,” STAR said in a statement on Monday.

The company will offer 750 million shares, which will represent as much as 21.74 percent of STAR immediately after the listing and a further 50 million shares may be sold to invited investors by a subsidiary of Steinhoff pursuant to an option.

Merger talks between Steinhoff and Shoprite, Africa’s largest grocer, collapsed this year following opposition from minority shareholders.

Billionaire Christo Wiese, the largest shareholder in both Steinhoff and Shoprite, has said that he wants to consolidate his holdings.

The newly listed company will have the share code, the company said. ($1 = 12.9758 rand) (Reporting by TJ Strydom; Editing by Greg Mahlich)

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