News: WOW UPDATE 1-Australia's Wesfarmers eyes November date for Coles demerger, to keep 15 pct...

(Adds details on demerger)

July 23 (Reuters) - Mining-to-home improvement conglomerate Wesfarmers Ltd (WES) said on Monday that it expected the demerger of its Coles supermarket chain division to be completed by November, and that it would retain a 15-percent stake in the business.

Coles is expected to have a dividend payout ratio ranging from 80 per cent to 90 per cent, Wesfarmers said in a statement, adding that the new entity would have net debt of about A$2 billion ($1.48 billion).

Wesfarmers had earlier this year announced plans to spin off the business and list it on the country's stock exchange. The conglomerate had initially said it would keep up to 20 percent of Coles.

The move came amid fierce competition in the Australian retail sector, where Coles saw stiff pricing pressure from fellow supermarket operator Woolworths (WOW) .

The demerger will be effected by a scheme of arrangement, under which eligible shareholders will receive one Coles share for every Wesfarmers share held.

James Graham will be appointed chairman of Coles, while David Cheesewright, Jacqueline Chow and Richard Freudenstein will be non-executive directors, Wesfarmers said.

($1 = 1.3475 Australian dollars)