Asia-Pacific-focused private equity investor Morgan Stanley Private Equity Asia (MSPEA) has agreed to sell its 38.7 percent stake in China-based natural gas distributor Sino Gas International to existing shareholder Hong Kong-listed gas service operator Zhongyu Gas for US$78.7 million. The transaction, which will be structured through Morgan Stanley Private Equity Asia IV, is subject to regulatory approval and scheduled to close before July 2017. MSPEA and Zhongyu Gas originally invested in Sino Gas International through a take-private deal in 2014.