Significant Derivatives Dealings in ENN Energy Holdings Amid Privatisation Scheme

Date: 3 March 2026
Subject: Public Disclosure of Dealings in ENN Energy Holdings Limited Shares
Context: Proposed privatisation by way of scheme of arrangement

Key Points from the Report

• Morgan Stanley Capital Services LLC (MSCS LLC) disclosed a series of derivatives transactions related to ENN Energy Holdings Limited.
• All transactions were carried out on 2 March 2026 and are associated with unsolicited client facilitation, indicating that the trades were made at the request of clients rather than for proprietary trading.
• The transactions involved both purchases and sales of derivatives referencing ENN Energy shares, with varying maturities extending from May 2026 to November 2027.
• All trades resulted in a zero resultant balance, suggesting that the positions were opened and closed on the same day or otherwise neutralised.
• MSCS LLC is a Class (5) associate connected with the Offeror in the privatisation, and is ultimately owned by Morgan Stanley.

Detailed Breakdown of Transactions

Key Issues for Shareholders

• Privatisation Context: The disclosure is made in connection with the ongoing privatisation of ENN Energy Holdings Limited by way of a scheme of arrangement. Such events can have a significant impact on share price and shareholder value, especially as large derivatives positions are being actively traded.
• Derivatives Activity: The volume and notional amounts of these trades—several in the hundreds of thousands of dollars—indicate heightened derivatives activity surrounding the stock. While these positions were neutralised, the presence of a Class (5) associate related to the Offeror trading in this manner could be interpreted by the market as a sign of significant impending corporate action or shifting sentiment among professional counterparties.
• Potential Price Sensitivity: The reference prices for the derivatives, ranging from approximately \$67.60 to \$68.95 per share, may provide an implicit market expectation or floor in the context of the privatisation. Investors should closely monitor developments and any further disclosures, as these may influence final offer terms or the market price of ENN Energy Holdings.
• Zero Resultant Balance: The reported zero resultant balance means that, as of the disclosure, MSCS LLC holds no open positions in these derivatives. This could indicate that the firm was acting purely as a market facilitator, but it also demonstrates the presence of significant short-term trading interest around the privatisation process.

Conclusion

The disclosure of substantial derivatives dealings by a Morgan Stanley entity connected to the Offeror is noteworthy for ENN Energy Holdings shareholders. This activity, tied to the privatisation scheme and involving significant notional amounts at prices near the likely offer level, could be interpreted by the market as a sign of behind-the-scenes positioning in anticipation of corporate actions. Investors should be vigilant for further disclosures and monitor any developments in the privatisation process, as these could have a direct impact on share value and the final terms available to minority shareholders.

Disclaimer: The information contained in this article is based on public disclosures and is intended for informational purposes only. It does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with their financial advisors before making investment decisions.