Private equity giant JC Flowers & Co said it is selling most of its stakes in Shinsei Bank, a move that will see the bank getting out of its foreign ownership structure.
According to a report by Reuters, JC Flowers will be selling the stakes for a cash value of $700 million.
The move will mean many things to Japan’s Shinsei Bank. A major change will come to its board as well. According to Reuters, as part of the transaction, J. Christopher Flowers will sell down his personal stake in the bank.
He is also expected to exit the bank’s board, according to the filing.
According to the transaction details, Flowers and other investors will sell as many as 45.6 million shares, including an over-allotment, to domestic and overseas investors.
The equity sale would bring the JC Flowers & Co holding from 21.4% to 3.8% of outstanding shares.
The private equity firm said while the sale price has not been set, the shares are worth around 74.2 billion yen.