Key Disclosure: Morgan Stanley Capital Services LLC’s Dealings in ENN Energy Holdings Limited Shares

Date: 11 March 2026

Subject: Privatisation by way of scheme of arrangement – Disclosure of dealings in ENN Energy Holdings Limited shares

Summary of the Report

• Morgan Stanley Capital Services LLC (MSCS LLC), a company ultimately owned by Morgan Stanley, disclosed dealings in derivatives related to ENN Energy Holdings Limited shares.
• The disclosure is made under Rule 22 of the Hong Kong Code on Takeovers and Mergers, in the context of a privatisation scheme of arrangement.
• The transactions were unsolicited client facilitation trades involving both purchases and sales of derivative products based on ENN Energy shares.

Details of the Derivative Transactions

Points of Interest and Potential Shareholder Impact

• Privatisation Context: The disclosure is linked to a proposed privatisation of ENN Energy Holdings Limited via a scheme of arrangement. Privatisation events are typically material and can significantly affect share prices, as they may result in a delisting and could affect liquidity and valuations.
• Dealings by a Connected Associate: MSCS LLC is a “Class (5) associate” connected with the Offeror in this privatisation process. Dealings by connected parties are closely monitored as they can sometimes signal the Offeror’s intentions or provide insight into market sentiment.
• Nature of Transactions: The trades were for client facilitation and were unsolicited, suggesting that MSCS LLC was not trading on its own strategic direction but rather facilitating client needs. Both the purchase and sale of derivatives for the same number of shares (16,900) and at the same price indicate these were likely offsetting trades, resulting in a net zero position.
• Price Levels: The reference price for these derivatives was around \$66.16 per share, which may act as a reference point for current or future valuations.
• No Net Position: The resultant balance after these trades is zero, indicating that MSCS LLC does not hold a directional position in ENN Energy through these derivatives at this time. Thus, there is no evidence of an attempt to accumulate or reduce exposure to ENN Energy by this connected party.
• Potential Price Sensitivity: While these specific trades are not directional, the involvement of a connected associate in any dealings during a privatisation process is closely scrutinized by investors and regulators. Any future changes in the trading pattern could be a material development.

Investor Takeaway

The disclosed dealings by Morgan Stanley Capital Services LLC in ENN Energy Holdings Limited derivatives are part of routine client facilitation and do not reflect a change in ownership or a directional bet on the company’s shares. However, the context—a proposed privatisation—makes all such disclosures price-sensitive, as any substantial activity by connected associates could potentially indicate shifts in the privatisation process or market expectations.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should perform their own due diligence and consult professional advisers before making investment decisions. The information is based on official disclosure filings and may be subject to change or updates.

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