Morgan Stanley Capital Services LLC Discloses Derivative Dealings in ENN Natural Gas Co., Ltd. Shares

Date: 10 March 2026
Subject: Privatisation by way of scheme of arrangement – Disclosure of dealings in the shares of ENN Natural Gas Co., Ltd.

Key Points from the Public Disclosure

• Morgan Stanley Capital Services LLC has made several derivative transactions in the shares of ENN Natural Gas Co., Ltd. as disclosed to the Hong Kong Executive under Rule 22 of the Hong Kong Code on Takeovers and Mergers.
• The dealings reported occurred on 9 March 2026, and all transactions involved derivatives related to A shares of ENN Natural Gas Co., Ltd., denominated in RMB.
• The transactions were classified as unsolicited client facilitation and included both purchases and sales of derivative products.
• The transactions were conducted on Morgan Stanley Capital Services LLC’s own account. The entity is a Class (5) associate connected with the Offeror and is ultimately owned by Morgan Stanley.

Details of the Transactions

• 200 derivatives (Other types of products)
  • Purchase and Sale
  • Maturity/Closing Out Date: 31 August 2027
  • Reference Price: RMB 22.1470 per share
  • Total Amount (per side): RMB 4,429.40
  • Resultant Balance: 0 (positions were closed immediately)
• 7,500 derivatives (Other types of products)
  • Purchase and Sale
  • Maturity/Closing Out Date: 26 February 2027
  • Reference Price: RMB 21.6552 per share
  • Total Amount (per side): RMB 162,414.00
  • Resultant Balance: 0 (positions were closed immediately)

Potential Impact for Investors and Shareholders

• Price Sensitivity: While Morgan Stanley Capital Services LLC engaged in substantial derivative transactions on ENN Natural Gas A shares, both the purchase and sale sides were matched and resulted in zero net positions. This indicates that the transactions were primarily for client facilitation rather than proprietary trading or a directional bet on the share price.
• Privatisation Context: The disclosure is directly related to the ongoing privatisation of ENN Natural Gas Co., Ltd. by way of a scheme of arrangement. Dealings by associates connected with the Offeror may be closely watched by investors for any indications of market sentiment or strategic positioning.
• Transparency and Regulatory Compliance: The full disclosure demonstrates compliance with Hong Kong’s regulatory requirements, which may reassure investors about the integrity of the privatisation process and the absence of undisclosed market manipulation.

What Shareholders Should Note

• The transactions disclosed were closed out immediately, meaning Morgan Stanley Capital Services LLC does not hold any open derivative positions in ENN Natural Gas A shares as a result of these dealings.
• The activity was classified as unsolicited client facilitation, suggesting it was conducted to meet client demand rather than to express Morgan Stanley’s proprietary view on the company.
• No direct impact on the share price is likely from these particular transactions, but the timing (amidst a privatisation process) and the involvement of a major financial institution are noteworthy.

Conclusion

The disclosed transactions by Morgan Stanley Capital Services LLC in the shares of ENN Natural Gas Co., Ltd. are significant for their timing and context within an ongoing privatisation scheme but are neutral in terms of direct price impact since no positions were maintained. Investors should continue to monitor disclosures related to the privatisation process for any meaningful developments or patterns of trading by connected parties.

Disclaimer: This article is based on public disclosure documents 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 research and consult professional advisors before making investment decisions.

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