* Reduces stake to allow local participation
* Namibian unit to raise nearly N$400 million via IPO
* To use cash to explore acquisitions
(Recasts with IPO pricing, shares)
JOHANNESBURG, Oct 1 (Reuters) - South African industrial group Bidvest plans to reduce its stake in its Namibian unit to 52 percent after listing the unit later this month to meet affirmative action targets, it said on Thursday.
Bidvest, whose activities cover food distribution, auto retail and freight services, was launching an initial public offering for Bidvest Namibia ahead of its Oct. 26 listing.
"The listing will provide for Namibian empowerment participation," Brian Joffe, Bidvest's chief executive said.
Namibian companies, like South African companies, have to meet targets on black ownership, employment and procurement as part of a government drive to give the previously disadvantaged a greater stake in the mainstream economy.
Bidvest, which currently holds an 89 percent stake in Bidvest Namibia, said the unit would raise about $364.5 million Namibian via ($48 million) the public offer, which would be used to explore acquisition opportunities in Namibia after the listing.
Some 49.7 million shares at 720 cents each are on offer to the general public and 923,400 shares at 648 cents each are offered to the holders of options in Namsea, one of the business units of Bidvest Namibia.
The public offer will run for two weeks.
Bidvest Namibia houses the group's fishing interests as well as businesses offering products and services such as stationery, office automation, freight and logistics management.
The Namibian unit's revenue rose 17.4 percent to 1.6 billion rand ($211 million) in the year to end-June, a small contribution to the group's total revenue of 112.4 billion rand.
Bidvest shares were 0.08 percent lower at 118.46 rand by 1224 GMT, while JSE blue-chip Top-40 index was slightly higher. (Reporting by Tiisetso Motsoeneng, editing by Will Waterman) ($1=7.589 Namibian Dollar) ($1=7.591 Rand)