Japan govt doubles stake in Shinsei Bank

TOKYO, March 31 (Reuters) - Japan's government doubled its stake in Shinsei Bank (8303.T) to almost 24 percent on Monday after converting its remaining preferred shares in the mid-size lender to common stock.

In a 1990s bailout, the government poured some 200 billion yen ($2 billion) into Shinsei's failed predecessor, Long-Term Credit Bank of Japan, and then Shinsei itself. In return, the government received preferred shares that eventually convert to common stock.

Due to previous conversions, the government owned just under 12 percent of the bank in terms of voting rights, making it the No.2 shareholder after U.S. buyout firm J.C. Flowers & Co LLC, which holds roughly a third of the bank.

That stake doubled on Monday, when the government converted 74.5 million preferred shares at a rate of 360 yen per common stock, giving the government an almost 24 percent stake in terms of voting rights. ($1=100.00 yen) (Reporting by David Dolan)