Morgan Stanley Discloses Derivatives Dealings in ENN Natural Gas Co., Ltd. Amid Privatisation Scheme

Date: 10 March 2026

Event: Privatisation by way of scheme of arrangement – Public Disclosure of Dealings in ENN Natural Gas Co., Ltd. Shares

Key Highlights

• Morgan Stanley Bank, N.A. has disclosed a series of significant derivatives transactions involving the A shares of ENN Natural Gas Co., Ltd.
• These disclosures are in line with Rule 22 of the Hong Kong Code on Takeovers and Mergers, triggered by ENN Natural Gas Co., Ltd.’s ongoing privatisation by way of scheme of arrangement.
• Dealings were both purchases and sales, all classified as “unsolicited client facilitation,” and executed for Morgan Stanley’s own account.
• All transactions were executed in RMB, involving various maturity/closing dates ranging from April 2026 to August 2027.
• Morgan Stanley Bank, N.A. is identified as a Class (5) associate connected with the Offeror and is ultimately owned by Morgan Stanley.

Detailed Breakdown of Transactions

Sales of Derivative Products

• 100 shares sold, maturing 27 January 2027, at RMB 21.7870 per share (total RMB 2,178.70)
• 200 shares sold, closing 31 August 2027, at RMB 22.1470 per share (total RMB 4,429.40)
• 800 shares sold, maturing 27 January 2027, at RMB 21.7063 per share (total RMB 17,365.00)
• 7,500 shares sold, closing 26 February 2027, at RMB 21.6552 per share (total RMB 162,414.00)

Purchases of Derivative Products

• 200 shares purchased, closing 29 December 2026, at RMB 21.8420 per share (total RMB 4,368.40)
• 300 shares purchased, closing 28 April 2026, at RMB 21.9200 per share (total RMB 6,576.00)
• 400 shares purchased, maturing 27 January 2027, at RMB 22.3475 per share (total RMB 8,939.00)
• 471 shares purchased, closing 28 April 2026, at RMB 21.8668 per share (total RMB 10,299.27)
• 500 shares purchased, maturing 27 January 2027, at RMB 21.9894 per share (total RMB 10,994.70)
• 1,300 shares purchased, closing 29 December 2026, at RMB 21.8046 per share (total RMB 28,346.00)

After these transactions, the resultant balance for each derivative position is reported as zero, indicating that all positions were closed out or offset.

Important Considerations for Shareholders

• Potential Price Sensitivity: The disclosure of these dealings comes at a sensitive time as ENN Natural Gas Co., Ltd. is undergoing a privatisation via a scheme of arrangement. Substantial dealings by a major associate of the Offeror (Morgan Stanley Bank, N.A.) could be interpreted as a signal of shifting institutional sentiment or strategic positioning.
• Market Impact: The relatively large sales and purchases, especially the single sale of 7,500 shares, may influence market perceptions regarding the value and potential direction of ENN Natural Gas Co., Ltd. shares during the privatisation process.
• Transparency and Regulatory Compliance: Such disclosures are mandated to ensure transparency and investor protection during takeover and merger situations. Investors should closely monitor further disclosures for any patterns or significant changes in derivative positions.
• Dealings in A Shares: All transactions pertain to A shares of ENN Natural Gas Co., Ltd., transacted in RMB, which may be relevant to investors tracking liquidity and trading volumes in the domestic Chinese market.

Investor Takeaway

This disclosure by Morgan Stanley Bank, N.A. is noteworthy for investors tracking the ongoing privatisation of ENN Natural Gas Co., Ltd. While the resultant derivative positions were closed, the size and timing of these trades could impact sentiment, especially given Morgan Stanley’s association with the Offeror. Investors should remain vigilant for further updates, as additional disclosures could provide more insights into market expectations for the privatisation outcome and share price trajectory.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own due diligence or consult professional advisers before making any investment decisions. The author and publisher accept no liability for any loss or damage arising from reliance on the information contained herein.

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