Japan Govt to Become Top Shareholder of Shinsei Bank

Economy

Tokyo, Aug. 8 (Jiji Press)--The Japanese government is expected to replace J.C. Flowers & Co. as the top shareholder of Shinsei Bank <8303> as the lender said Thursday that the U.S. investment firm will sell most of its stake in the bank.

J.C. Flowers concluded that its investment in the Japanese bank has achieved some results. J.C. Flowers and Ripplewood Holdings, another U.S. investment firm, jointly acquired the Long-Term Credit Bank of Japan, Shinsei Bank's predecessor, in March 2000.

The Japanese government owns about 18 pct of Shinsei Bank.

J.C. Flowers, its chief executive officer, Christopher Flowers, and former Shinsei Bank President Thierry Porte will sell a stake of up to 17.6 pct in the bank by Aug. 30. The deal is estimated at some 74.2 billion yen, based on the bank's stock price.

After the share sale, Flowers will step down as an outside board member of Shinsei Bank, the post in which he has served since the 2000 acquisition.

[Copyright The Jiji Press, Ltd.]

Jiji Press