SK Gas Co., a unit of South Korea's third-largest conglomerate SK Group, said Tuesday that it will sell half of its 1.96 percent stake in Hong Kong-listed China Gas Holdings to its affiliate SK E&S Co., a local city gas provider, for 79 billion won ($71.7 million).

   The stake sale aims to secure funds to acquire Dongbu Power Dangjin Corp., the operator of a coal-fired thermal power plant in South Chungcheong Province, and push for a project to build a propane dehydrogenation plant which produces propylene.

   Propylene is a raw material used for making auto parts, textiles and home appliances.

   The deal is slated to be completed Wednesday.

   The stake sale will lower SK Gas' stake in the China's leading gas provider to 0.98 percent.

   "We have decided to buy the stake in China Gas Holdings as it sells city gas to 12 million households in China and has a high growth potential," SK E&S said in a news release. (Yonhap)