Detailed Investor Report: Disclosure of Dealings in ENN Energy Holdings Limited

Background

On 23 February 2026, a public disclosure form was released in connection with the proposed privatisation of ENN Energy Holdings Limited by way of a scheme of arrangement. The report, filed under Rule 22 of the Hong Kong Code on Takeovers and Mergers, reveals recent dealings in the shares of ENN Energy Holdings Limited by Morgan Stanley Capital Services LLC, a Class (5) associate connected with the offeror.

Key Points from the Report

• Significant Derivative Transactions: On 20 February 2026, Morgan Stanley Capital Services LLC engaged in multiple derivative transactions linked to the shares of ENN Energy Holdings Limited. These transactions involved both purchases and sales of derivatives, all classified as “Unsolicited client facilitation” trades.
• Volume and Value of Transactions:
  • Purchases ranged from 100 to 1,200 reference securities per trade, with notional values from \$6,915 to \$82,555 per transaction.
  • Sales mirrored the purchase amounts, effectively netting out the positions by the end of the reporting period.
  • All trades were executed at prices around \$68.80 to \$69.15 per underlying share.
• No Net Position: After these transactions, the resultant balance for each derivative position is reported as zero, indicating that Morgan Stanley Capital Services LLC ended up with no net exposure to ENN Energy shares at the close of these trades.
• Ownership and Connection: Morgan Stanley Capital Services LLC is ultimately owned by Morgan Stanley and is identified as a connected party to the offeror in the ongoing privatisation process.

Implications for Shareholders

• Transaction Timing and Price Sensitivity: The series of derivatives trades occurred just days before this disclosure, coinciding with the ongoing privatisation process. This activity could signal heightened market interest and volatility in the stock, as large financial institutions are actively engaging in transactions around the current offer price.
• Price Levels as Reference Points: All transactions were executed at prices very close to the presumed privatisation offer price (approximately \$69 per share). This could provide investors with a reference point for fair value expectations in the context of the scheme of arrangement.
• Potential Market Impact: While the net position is zero, the volume and notional value of the trades indicate significant liquidity and interest from a major market participant. This might affect short-term trading sentiment and price discovery for ENN Energy shares.
• Connected Party Activity: As Morgan Stanley Capital Services LLC is a Class (5) associate connected with the offeror, its trading activities may be closely watched by the market and regulators for any signs of insider positioning or strategic hedging related to the privatisation deal.

Investor Takeaway

Investors should be aware that while these transactions did not result in a net change in positions for Morgan Stanley Capital Services LLC, the scale and timing of the trades — as well as the entity’s connection to the offeror — could be interpreted as a sign of institutional activity and expectations around the privatisation price level. Any new developments in the scheme of arrangement or further disclosures of large trades could move the share price.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with a professional advisor before making investment decisions.

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