Morgan Stanley Discloses Significant Dealings in ENN Natural Gas Co., Ltd. Shares During Privatisation Scheme

Overview

On 17 April 2026, a public disclosure was made regarding market dealings by Morgan Stanley & Co., International plc in shares of ENN Natural Gas Co., Ltd., amid the company’s ongoing privatisation by way of a scheme of arrangement. This disclosure was made under Rule 22 of the Hong Kong Code on Takeovers and Mergers.

Key Points for Investors

• Morgan Stanley & Co., International plc disclosed both purchases and sales of ENN Natural Gas Co., Ltd. shares on 16 April 2026.
• Nature of Dealings: These transactions were conducted as part of hedging Delta 1 products, which were created due to wholly unsolicited, client-driven orders.
• Purchase Transaction:
  • Total shares purchased: 200 shares
  • Total amount paid: RMB 4,171.00
  • Highest price paid: RMB 20.93 per share
  • Lowest price paid: RMB 20.78 per share
• Sale Transaction:
  • Total shares sold: 13,800 shares
  • Total amount received: RMB 285,138.00
  • Highest price received: RMB 20.88 per share
  • Lowest price received: RMB 20.62 per share
• Class (5) Associate: Morgan Stanley & Co., International plc is a Class (5) associate connected with the Offeror, and these dealings were executed for its own account.
• Ownership: Morgan Stanley & Co., International plc is ultimately owned by Morgan Stanley.
• Dealings in A Shares: All transactions involved A shares of ENN Natural Gas Co., Ltd., denominated in RMB.

Why This Matters for Shareholders

The disclosure of Morgan Stanley’s dealings is highly relevant for shareholders and potential investors of ENN Natural Gas Co., Ltd. for several reasons:

• Privatisation Process: The company is currently undergoing a privatisation scheme, which is typically a period of significant share price sensitivity. Activities by major financial institutions such as Morgan Stanley can signal market sentiment and may influence investor confidence.
• Volume and Price Range: The sale of 13,800 shares at prices between RMB 20.62 and RMB 20.88 per share, and the purchase of shares at similar levels, provides important price benchmarks for the market during the privatisation process.
• Hedging Activity: The nature of the trades—hedging Delta 1 products following unsolicited client-driven orders—suggests that these moves are not speculative but rather risk management responses to client activity. However, the involvement of a major connected associate in such volumes could still impact supply and demand dynamics in the market.
• Market Impact: While the transactions are relatively modest in absolute terms, their disclosure amid a sensitive period for the company could be interpreted by the market as a sign of ongoing institutional activity and liquidity. This may influence short-term trading or investor expectations regarding the privatisation outcome.

Conclusion

Investors in ENN Natural Gas Co., Ltd. should closely monitor further disclosures and market activity, especially given the company’s current privatisation scheme. The reported dealings by Morgan Stanley & Co., International plc, although hedging-driven and not speculative, are noteworthy due to their timing and the status of Morgan Stanley as a connected associate. These transactions, particularly in the context of the ongoing scheme of arrangement, could influence market sentiment and the share price in the near term.

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 provided is based on publicly disclosed data and may be subject to change.

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