New LTCB Partners C.V., Shinsei Bank's largest shareholder, will distribute 61 percent of its 65 percent stake in the bank to shareholders by the end of next March, Shinsei Bank said Thursday.

NLP, which is led by U.S. investment fund Ripplewood Holdings LLC, will distribute some 832.9 million common shares to its direct and indirect investors.

Shinsei Bank was reborn from the ashes of the failed Long-Term Credit Bank of Japan, which was nationalized in 1998 and sold in March 2000 to NLP.