SINGAPORE - Insurer Great Eastern has entered into a share and purchase agreement to divest a minority stake in Indonesia insurance firm, QBE Indonesia, for some US$1.4 million (S$1.9 million).

The buyer, PT Suryasono Sentosa, will receive a 5 per cent stake in QBE Indonesia following the transaction, which is subject to approval by Indonesia's financial services authority, Otoritas Jasa Keuangan, and the Monetary Authority of Singapore.

The move comes after Great Eastern on Dec 11 said that it would sell a minority stake in QBE Indonesia after acquiring it to satisfy Indonesian shareholding requirements.

Great Eastern, which is majority owned by Singapore lender OCBC, previously announced that it would buy QBE Indonesia for US$28 million as part of its broader strategy of building its general insurance operations into a significant business pillar and deepening its footprint in Indonesia.

Shares in Great Eastern closed at $26.65 on Friday, down 1.1 per cent or $0.30, while shares in OCBC last traded at $11.47 apiece, up 0.5 per cent, or six cents.