(Yicai Global) Dec. 2 -- Zhuhai Gree Group and a unit under Hillhouse Capital Group have penned a share transfer agreement that will give Hillhouse a 15 percent stake in Gree's electric appliance arm after the seller postponed the handover last month.

The group will sign the shares over to Zhuhai Mingjun Investment Partnership, Zhuhai Gree Electric said in a statement today. The deal, part of China's efforts to reduce government ownership in its corporations to make them more competitive, will reduce state-owned Gree Group's stake in the air conditioner maker to 3.2 percent.

Gree Electric suspended its share trading before the market opened today and is likely to resume tomorrow.

The target identified Zhuhai Mingjun as the successful bidder for the stake on Oct. 28, but the seller said on Nov. 11 that it was delaying the transfer as the parties had not concluded negotiations. Gree Group put the stock up for sale in April, attracting bids from the likes of Chinese tech giant Baidu and Singapore's Temasek Holdings.

New York-founded Hillhouse is one of Asia's biggest investment funds by asset managed. It now runs out of its Singapore headquarters and has China offices in Shanghai and Beijing.

Editor: James Boynton