American private equity investment firm JC Flowers is set to sell most of its stake in Japanese lender Shinsei Bank.

The move will also see JC Flowers CEO J Christopher Flowers sell his personal stake and step down from the Shinsei Bank board.

The American firm owned 21.37% of Shinsei’s outstanding shares. It plans to sell around 17.61% of holding to reduce its stake to around 3.8%.

Overall, it will sell around 45.6 million shares. The share price will be set later this month; however, it carries a combined value of around $700m, according to the latest closing price.

JC Flowers did not state any reason for the decision.

The sale of shares will be handled by Bank of America Merrill Lynch, Citigroup and Nomura Holdings.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

In 2000, JC Flowers partnered with Ripplewood to acquire the struggling Shinsei’s predecessor Long-Term Credit Bank.

It was the first Japanese lender to be owned by foreign investors, reported Reuters.

After JC Flowers divests its stake, the Japanese government is expected to become the largest shareholder of the Shinsei Bank.

Headquartered in Tokyo, Shinsei Bank has total assets of JPY9,571.1bn ($90.51bn). It has three main business segments- retail banking, institutional banking and consumer/commercial finance.

In April this year, J C Flowers-owned First Bank agreed to acquire Bank Leumi Romania.

Bank Leumi Romania operates 15 branch offices and employs 200 banking professionals. It had more than €250m in assets, at the end of 2018.