Popular Inc. Chairman and Chief Executive Richard Carrion told shareholders that he expects to sell a majority stake of the company's transaction processing and technology subsidiary Evertec in the third quarter.

The bank expects to announce a deal this quarter and close it in the third quarter.

Carrion said during Popular's annual shareholder meeting in San Juan, Puerto Rico, that it had received preliminary interest that could yield a price of about $1 billion.

The CEO said the bank has no plans to raise additional capital at this point. Popular had previously disclosed that it was contemplating selling a stake of Evertec.

Carrion said Popular had made a commitment to regulators to raise $500 million if it acquired one of the failing banks on the island.

On Friday it bought Westernbank after the W Holding Co Inc. unit was taken into receivership by the Federal Deposit Insurance Corp. Three Puerto Rican banks failed Friday. Popular had raised $1.15 billion in capital last month through a secondary offering in anticipation of an FDIC-assisted transaction.

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