Valartis Finance Holding in Liechtenstein owns 70% of share capital of the private banking subsidiary, for which a price tag of CHF77.7m (£55.8m, $79.7m, €71.2m) has been agreed.
The share purchase agreement is subject to regulatory and corporate approvals but is expected to complete in the second quarter of 2016.
Upon completion, Valartis Finance Holding will repay outstanding credit liabilities, including interest and fees, totalling CHF43.2m to Valartis Bank (Liechtenstein). The remaining purchase price should be used to further reduce debt and retain necessary liquidity in the business.
While taking its first steps into asset and wealth management, in a statement Citychamp said it intends to retain all employees and management team to provide clients with consistency of private banking, asset management and financial advisory services.
The divestment of the Liechtenstein and Austria-based private banking arms of the troubled group formed significant parts of its recovery plan, with a six-month moratorium approved in November 2015, which will close on 23 May 2016.
This latest deal follows the divestment of Valartis Bank (Austria), of which sales contracts were signed on 21 December 2015.