Troubled Franco-Belgian Banking group Dexia has said that it is selling a 40 per cent stake in private bank Popular Banca Privada to Banco Popular Español for €49.2 million.

Troubled Franco-Belgian Banking group Dexia has said that it is selling a 40 per cent stake in Spanish private bank Popular Banca Privada to Banco Popular Español for  €49.2 million ($66.6 million).

Banco Popular Español currently has a 60 per cent stake in Popular Banco Privada and has had the option to purchase shares since December 2012.

Dexia said that it expects the transaction to be completed in the first quarter of 2014, subject to regulatory approval.

Dexia nearly collapsed in 2011 after suffering heavy losses in the wake of the financial crisis and was bailed out by France, Belgium and Luxembourg.

After it failed to recover, it was stripped of its activities and the agreement with Popular Banca Privada completes the disposal process for the group.

"In signing this share purchase agreement, Dexia completes the sale process set out in its revised orderly resolution plan approved by the European Commission on 28 December 2012. Now focused on its target perimeter, the Dexia group will devote its efforts to fulfil its mandate to manage down its residual assets," Dexia said in a statement.