KKR and Morgan Stanley sell stakes in Orient Corp. to Mizuho

A statement issued by Mizuho said the firm would buy 19.7 million shares from KKR and 30.6 million shares from Morgan Stanley.

In 2007, Orient Corporation issued JPY 290 billion ($3.56 billion) worth of preferred shares in an effort to boost capital, resulting in KKR purchasing JPY20 billion ($246 million) worth of the shares and Morgan Stanly acquiring JPY35 billion ($430 million). In line with that deal, Morgan Stanley and KKR were able to convert the preferred shares to common stock in November.

According to the Nikkei report, other Orient shareholders, including Itochu Corp and Development Bank of Japan, also sold their portions to Mizuho. Before the transactions, Mizuho held a 27.2% stake, facilitated by a conversion of preferred shares earlier this year. That was set in motion in an effort to rebuild Orient's deteriorated business after the lender lost approximately a quarter of its sales over the past four years following a shift in lending policy.

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