* Stanlib first wants to see ICT row resolved
* Ayigobi confident shareholders will support the deal
By Shapi Shacinda
JOHANNESBURG, Oct 14 (Reuters) - South Africa's Stanlib Asset Management has joined a growing list of minority shareholders questioning a controversial offer by ArcelorMittal South Africa of a 26 percent stake to black investors.
ArcelorMittal SA's Black Economic Empowerment (BEE) offer involves a consortium called Ayigobi, whose directors are linked to senior politicians. It valued the share offer at 9.1 billion rand ($1.3 billion) on announcing it on Aug 10.
Before it proceeds with the offer, Stanlib said, the local unit of global steel giant ArcelorMittal should first resolve a controversy over its plan to buy Imperial Crown Trading (ICT).
ICT holds a disputed prospecting right for a stake in Kumba Iron Ore's Sishen mine. ArcelorMittal SA used to hold a right to Sishen but failed to renew it earlier this year before a deadline.
Shortly after the deadline, a prospecting right was awarded to ICT, a little known company with links to senior politicians -- sparking concerns about corruption in Africa's biggest economy.
ArcelorMittal SA said in August it would buy ICT to regain access to Sishen and obtain a source of iron ore at a discount from Kumba. The steel firm and Kumba are still in mediation over a pricing dispute for the iron ore.
For a timeline on the Kumba/ICT dispute, see
Other minority shareholders, including RMB Asset Management, South Africa's Public Investment Corporation and Sanlam, the country's biggest insurer, have opposed the BEE deal.
Some shareholders said the deal had not been conducted in a transparent way.
A spokesman for ArcelorMittal SA said the company had discussed the concerns with its major local shareholders but had not presented a formal proposal.
Stanib only owns 0.16 percent of ArcelorMittal SA but is an influential voice in South African fund management circles.
Its head of resources, Herman van Velze, said ArcelorMittal SA should deal with legal issues around the proposed ICT deal before considering offloading shares to Ayigobi.
The proposed 26 percent share offer is expected to benefit politicians, including President Jacob Zuma's son, Duduzane.
Shares in ArcelorMittal SA were little changed at 83.06 rand on Thursday, down from 85.94 rand at the close of Aug. 6, the last trading day before the announcement of the BEE deal.
"We would like the ICT legality resolved. It has to be resolved before the Ayigobi deal can go ahead, and then we will look at the ... deal and maybe suggest some amendments," van Velze told Reuters.
STRATEGIC TO INVESTORS
Johannesburg-based political analyst Allister Sparks said shareholders' objections to the Ayigobi share offer could divide the ruling ANC, its communist allies and trade unions, because of the concerns about corruption.
"It is strongly frowned upon, and it's not good for investor confidence," Sparks said.
Ayigobi Chairman Sandile Zungu said there was nothing wrong with the planned deal.
"It's very strategic because (we want) to be involved in the steel value-chain. In fact they will not oppose the transaction when the details are furnished to them," he said.
Other shareholders in ArcelorMittal SA, including the state-run Industrial Development Corporation (IDC) said they were keenly following the saga and would make a decision later.
An ArcelorMittal spokesman said the company supported decisions by the board of its South African unit. (Reporting by Shapi Shacinda; Editing by Ed Cropley and Jane Baird)