Overview

On 20 February 2026, a Public Disclosure Form was issued in relation to the privatisation of ENN Energy Holdings Limited by way of a scheme of arrangement. This disclosure, made pursuant to Rule 22 of the Hong Kong Code on Takeovers and Mergers, highlights significant securities dealings conducted by Morgan Stanley Capital Services LLC, a Class (5) associate connected with the Offeror, and ultimately owned by Morgan Stanley.

Key Points from the Disclosure

• Nature of Dealings: All transactions disclosed relate to derivatives based on ENN Energy Holdings shares. The dealings were unsolicited client facilitations, meaning Morgan Stanley Capital Services LLC acted on behalf of clients but for its own account.
• Transaction Types: Both purchases and sales of derivative products were executed, indicating active trading rather than directional bets on ENN Energy’s share price.
• Transaction Details:
  • Purchases:
    • 632 derivatives, maturity 1 June 2027, reference price: \$69.0897, total paid: \$43,664.72
    • 1,600 derivatives, maturity 13 November 2026, reference price: \$68.7062, total paid: \$109,929.92
    • 1,700 derivatives, maturity 31 December 2027, reference price: \$68.7045, total paid: \$116,797.60
  • Sales:
    • 632 derivatives, maturity 1 June 2027, reference price: \$69.0897, total received: \$43,664.72
    • 1,600 derivatives, maturity 13 November 2026, reference price: \$68.7062, total received: \$109,929.92
    • 1,700 derivatives, maturity 31 December 2027, reference price: \$68.7045, total received: \$116,797.60
• Resultant Balance: After these dealings, Morgan Stanley Capital Services LLC reported a zero resultant balance in these derivatives, suggesting positions were opened and closed on the same day or in close sequence.
• Connection to Offeror: Morgan Stanley Capital Services LLC is a connected party to the Offeror, which is significant for shareholders tracking major stakeholder activity during the privatisation process.

Implications for Shareholders

• Price Sensitivity: While these dealings do not directly affect the underlying shares of ENN Energy Holdings, the volume and nature of the transactions could be indicative of institutional interest or hedging activity around the privatisation event. The reference prices for the derivatives (\$68.70–\$69.09 per share) may serve as a benchmark for value assessment during the scheme of arrangement.
• Transparency and Regulatory Compliance: The disclosure is important for transparency and regulatory compliance, ensuring that shareholders are aware of all connected party dealings during the privatisation process.
• No Change in Shareholding: The resultant balance being zero means no net change in Morgan Stanley Capital Services LLC’s exposure to ENN Energy Holdings derivatives at the end of these transactions.
• Potential Share Price Impact: The presence of a major financial institution actively trading in ENN Energy derivatives during a privatisation event may influence investor sentiment and trading activity in the underlying shares.

Additional Details

• All dealings were unsolicited client facilitation trades.
• Each transaction was made for Morgan Stanley Capital Services LLC’s own account, not a client’s account.
• Morgan Stanley Capital Services LLC is ultimately owned by Morgan Stanley, a global financial institution.

Conclusion

For investors and shareholders of ENN Energy Holdings, this disclosure signals active institutional trading in derivatives related to the company’s shares during a critical privatisation event. While no direct shareholding changes occurred, the prices and volumes of these derivatives may serve as a reference point for market sentiment and the privatisation scheme’s implied valuation. Shareholders should remain vigilant for further disclosures and monitor price movements as the privatisation process unfolds.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research and consult professional advisors before making any investment decisions. The information provided is based on publicly disclosed documents and may not reflect real-time trading activity or updated positions.

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