KKR, Morgan to sell Orient Corp Pref. Shares to Mizuho

KKR and Morgan Stanley are selling JPY 30 billion (USD 370 million) preferred shares of Orient Corporation, a consumer credit provider, to Mizuho Financial Group. Orient issued JPY 290 billion preferred shares after falling into a negative net worth in FY 2007. According to the Nikkei report, while Mizuho group obtained a large chunk of the issue, more than JPY 100 billion are held by Itochu Corp, the Development Bank of Japan, as well as Morgan Stanley and KKR. Conversion rights of the preferred shares kicked in last month and Mizuho aims to buy back shares to avoid dilution.