China Gas (HKG:0384) agreed to sell a 23% stake in its China Gas Hongming Electricity Sales unit to a trio of buyers for 216 million yuan, according to a Friday bourse filing.

Shares declined 1.6% in Monday's afternoon trade.

The Chinese natural gas distributor will sell the stake to China Dual Carbon, Brilliant Linkwise and Beauty Asia, each of whom are affiliated with the company through certain members of its management and board.

The buyers will settle 20% of the payment by the end of the year, and the remaining 80% within three years after the completion of the agreement.