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The government is expected to replace J.C. Flowers & Co. as the top shareholder of Shinsei Bank after the institution 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 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 government owns about 18 percent of Shinsei.

J.C. Flowers, its Chief Executive Officer Christopher Flowers and former Shinsei Bank President Thierry Porte will collectively sell a stake of up to 17.6 percent in the bank by Aug. 30. The deal is estimated to be worth about ¥74.2 billion, based on the bank’s stock price.

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

LTCB went bust in October 1998 in the aftermath of the collapse of the bubble economy in the early 1990s. It was later temporarily placed under state control. Shinsei Bank has yet to fully repay public funds injected by the state.

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