Investor Update: Public Disclosure of Securities Dealings in ENN Natural Gas Co., Ltd.

Key Points from the Disclosure Report

• Date of Disclosure: 5 March 2026
• Transaction Parties: Morgan Stanley Capital Services LLC, a Class (5) associate connected with the Offeror, and ultimately owned by Morgan Stanley.
• Nature of Dealings:
  • Unsolicited client facilitation transactions involving derivatives linked to the A shares of ENN Natural Gas Co., Ltd.
  • Both purchase and sale transactions for 32,400 reference securities each, executed on 4 March 2026.
• Product Details:
  • Derivatives (other types of products)
  • Maturity/closing out date: 31 August 2027
  • Reference price: RMB 22.2064 per security
  • Total gross value for each transaction: RMB 719,487.6840
  • Resultant balance after these dealings: 0
• Context: The disclosure relates to a privatisation by way of scheme of arrangement, as per Rule 22 of the Hong Kong Code on Takeovers and Mergers.

Important Considerations for Shareholders

• Price Sensitivity: The reported dealings were for unsolicited client facilitation and resulted in a net zero position for Morgan Stanley Capital Services LLC. This means they bought and sold derivatives linked to ENN Natural Gas A shares in equal amount, with no resultant holding.
• Privatisation Process: The disclosure takes place in the context of a privatisation scheme of arrangement. Such corporate actions can significantly impact share valuations, trading liquidity, and investor decision-making.
• Connected Party: Morgan Stanley Capital Services LLC is a connected party to the Offeror, which may indicate coordination or strategic interests in the privatisation process. This is important for shareholders monitoring for potential conflicts of interest, insider activities, or coordinated market moves.
• Derivative Dealings: While the transactions are reported as unsolicited client facilitation, the scale and nature of derivative trading (both buying and selling equivalent-sized positions) may signal institutional interest or hedging activity around ENN Natural Gas Co., Ltd.’s share price and the outcome of the privatisation.
• Currency and Share Class: Transactions were conducted in RMB and involved A shares, which may differ from H shares or other listings, potentially affecting price discovery and investor access.

Potential Impact on Share Price

While these dealings do not result in an open position for Morgan Stanley Capital Services LLC, the disclosure is significant because it relates to a privatisation event and involves a connected party to the Offeror. Institutional derivative activity—especially when reported in the context of a takeover or scheme of arrangement—may trigger investor attention and speculation about the final outcome, potential price volatility, and the likelihood of the privatisation proceeding.

Investors should closely monitor further disclosures and announcements related to ENN Natural Gas Co., Ltd., especially any changes in positions or additional activity from connected parties. The privatisation scheme could lead to substantial revaluation of the company’s shares, and the involvement of major institutions such as Morgan Stanley may indicate heightened activity or strategic interests in the outcome.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult professional advisors before making any investment decisions. The information is based on public disclosures and may be subject to further updates or clarifications.

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