Nedbank Group Ltd. confirmed its intention to implement an odd-lot offer to all of its eligible shareholders holding fewer than 100 ordinary shares in the group to repurchase the shares, subject to shareholder approval.

Under the offer, the shares will be purchased at a 5% premium to the 10-day volume-weighted price at the Dec. 3 business close. Nedbank said the move will reduce complexity and administration costs associated with its newly enlarged shareholder base.

The move comes after Old Mutual Ltd. completed the unbundling of its majority stake in Nedbank, reducing its holding in the lender to 19.9%. The move marks the final step in Old Mutual's managed separation. Each qualifying Old Mutual shareholder received 3.21176 Nedbank shares for every 100 Old Mutual shares.

Nedbank noted that the unbundling increased its population of shareholders to about 500,000 from about 20,000, and said the "vast majority" hold fewer than 100 shares. Their total shareholding is estimated at 1.5%.

Shareholders will have to request to opt out of the repurchase; if they do not make an election, they will be deemed to have accepted the offer.