Morgan Stanley Discloses Derivative Dealings in ENN Natural Gas Co., Ltd. Shares Amidst Privatisation Scheme

Key Highlights from the Public Disclosure Report

• Date of Disclosure: 11 March 2026
• Event: Privatisation of ENN Natural Gas Co., Ltd. by way of scheme of arrangement
• Disclosure Type: Dealings in shares and derivatives as required by Rule 22 of the Hong Kong Code on Takeovers and Mergers
• Disclosing Party: Morgan Stanley & Co., International plc (a Class (5) associate connected with the Offeror)
• Type of Securities: Derivatives based on A shares of ENN Natural Gas Co., Ltd., denominated in RMB
• Dealings Date: 10 March 2026

Detailed Breakdown of Dealings

Morgan Stanley & Co., International plc reported a series of derivative transactions involving ENN Natural Gas Co., Ltd. shares, all executed as unsolicited client facilitation transactions. The details are as follows:

Important Information for Shareholders

• Privatisation in Progress: The disclosure comes in the context of ENN Natural Gas Co., Ltd. undergoing a privatisation process by way of a scheme of arrangement. Such corporate actions can significantly impact share prices as they often involve an offer price for existing shares, leading to possible revaluations.
• Derivatives Activity: The disclosed dealings reflect both purchases and sales of derivatives (synthetic positions) relating to ENN Natural Gas’s A shares, all conducted on Morgan Stanley’s own account. The nature and timing of these trades suggest active positioning around the privatisation event.
• Price Sensitivity: The reference prices for the transactions ranged from RMB 20.9913 to RMB 21.0950. These prices can be used as important benchmarks for market participants gauging the potential offer price or expected share value post-privatisation.
• Resultant Balance: All positions were closed out to zero, indicating no open exposure as of the report date. However, the activity itself highlights that significant institutional trading is occurring around the stock, which may influence market sentiment.
• Connected Associate: Morgan Stanley & Co., International plc is identified as a Class (5) associate of the Offeror, meaning it may have access to non-public information or be acting in concert with the party making the privatisation offer. This is particularly relevant for shareholders and regulators monitoring for conflicts of interest or unusual trading patterns.

Potential Market Impact

Shareholders should be aware that the disclosed derivative dealings by a major connected associate like Morgan Stanley around a significant event such as privatisation may indicate expectations of price movement or serve as a signal of current market valuations. The volume and value of transactions, and the fact that all positions were closed out, could reflect hedging or speculative strategies ahead of anticipated developments in the privatisation process.

What Investors Should Watch

• Upcoming announcements regarding the privatisation terms, particularly any changes to the offer price or conditions.
• Further disclosures of dealings by associates or parties acting in concert with the Offeror, as these may provide insights into expected outcomes or market consensus.
• Market price movements in ENN Natural Gas Co., Ltd. A shares, especially if they approach or diverge from the disclosed transaction prices.

Disclaimer: The information provided in this article is based on public disclosures and is intended for informational purposes only. It does not constitute investment advice. Investors are advised to conduct their own research and consult with professional advisers before making any investment decisions.

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