Lion Global Investors, a subsidiary of Great Eastern Holdings, is looking to divest a unit to Bank of Singapore for RM24.9 million (S$8.16 million).

Great Eastern is OCBC Bank's insurance arm, while Bank of Singapore is OCBC's private banking arm.

Based on exchange filings yesterday, Lion Global holds 3.5 million ordinary shares in Pacific Mutual Fund Berhad (PMF), representing a 70 per cent stake.

Lion Global has entered into a conditional sale and purchase agreement with Bank of Singapore to sell that stake for about RM24.9 million, to be paid in cash.

The audited net tangible asset value of PMF was approximately RM21.6 million as at Dec 31, 2018.

The transaction is subject to certain approvals from various parties, including the Monetary Authority of Singapore and Securities Commission Malaysia.

Great Eastern holds a 70 per cent stake in Lion Global.

The remaining 30 per cent is held by a wholly owned subsidiary of OCBC.

Upon completion of the transaction, PMF will no longer be a subsidiary of Great Eastern.

However, OCBC will continue to be the indirect holding company of PMF through Bank of Singapore's interest in PMF.

The transaction is not expected to have a material effect on the net tangible assets or earnings per share of Great Eastern for FY2019.