It now owns just 20% of the Bank.
The Co-Operative Bank invited offers to buy all of it shares as it continues to complete the turnaround from 2013's near-collapse.
In the film, Flowers had boasted of 'snorting some good stuff' before being interviewed by the Treasury Select Committee about the state of Co-op bank. Either way, investors in its shares and bonds face potential losses.
The bank almost collapsed in 2013 after it revealed a £1.5bn black hole in its accounts.
"Some customers have chosen to bank with Co-op because of its ethical values - unfortunately if it gets taken over or swallowed up you would have to question whether such values would still exist. We are focused on finding the best outcome for our members, two million of whom are bank customers, as well as the members of our shared pension scheme which is well-funded and supported by the group".
Commenting on today's news, Liam Coleman, chief executive officer, says: "Since 2013, we have successfully addressed significant legacy issues, reduced the cost base and rebuilt our franchise and customer proposition".
In a statement on its website it says: "As we go through the process, it remains very much business as usual, and our number one priority is to continue to provide the high quality service that is valued by our customers".
Capita and The Co-operative Bank have now announced that all aspects of the contractual dispute have been resolved and revised terms agreed.
The two companies reached an agreement in 2014 for Capita to take over the bank's mortgage servicing operation in the United Kingdom, in a deal worth £325m over ten years.
In a statement released on Monday morning the bank's chairman Dennis Holt said that, while it had meet its capital requirements "continuously since 2014" and expected to be able to do so, it has always been clear that freeing up more capital was an important part of the organisation's future plans.
The bank contracted out its mortgage administration to Capita in a 10-year £325 million deal but the latter said Co-op had withheld payment for these services, while the bank argued Capita had failed to uphold its end of the deal.