Nov. 28 (Bloomberg) -- Shinsei Bank Ltd., the Japanese buyer of General Electric Co.’s local consumer-finance businesses, plans to invest NT$10 Billion ($300 million) to gain control of Taiwan’s Jih Sun Financial Holdings Co.

The capital injection will bring Jih Sun’s outstanding share capital to about NT$30 billion from NT$20 billion at present and improve its capital-adequacy ratio, Clements Chung, a spokesman for the Taipei-based company, said by phone today.

Shinsei aims to take control of the Taiwanese company through the investment, which is subject to regulatory approval, spokesman Donald Macintyre said by phone. The Tokyo-based lender, part-owned by private-equity investor Christopher Flowers, is already Jih Sun’s biggest shareholder with a stake of about 33 percent, according to Chung. Both spokesmen declined to provide additional details.

Moody’s Investors Service downgraded its credit rating on Shinsei this month, saying the lender’s 580 billion yen ($6.1 billion) acquisition of GE’s local consumer-finance units in September increased the company’s risk assets and reduced its capital adequacy. Shinsei’s Chief Executive Officer Thierry Porte resigned on Nov. 12 after posting a wider-than-expected fiscal first-half loss.

Fubon Financial Holding Co., Taiwan’s second-largest publicly traded financial services company, earlier denied a United Evening News report that it plans to acquire Jih Sun through a share swap.

Shinsei rose 3.4 percent to 152 yen in Tokyo trading before today’s announcement, trimming its year-to-date loss to 63 percent. Jih Sun, which is down 70 percent this year, rose 4.2 percent in Taipei.

To contact the reporter on this story: Finbarr Flynn in Tokyo at fflynn3@bloomberg.netChinmei Sung in Taipei at csung4@bloomberg.net

Last Updated: November 28, 2008 06:04 EST