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

Key Highlights for Investors

• Date of Disclosure: 22 April 2026
• Context: Ongoing privatisation of ENN Natural Gas Co., Ltd. via scheme of arrangement under the Hong Kong Code on Takeovers and Mergers
• Disclosing Party: Morgan Stanley & Co. International plc, a Class (5) associate connected with the Offeror and ultimately owned by Morgan Stanley
• Nature of Securities: Derivatives linked to A shares of ENN Natural Gas Co., Ltd., traded in RMB
• Type of Transaction: Unsolicited client facilitation involving both Purchases and Sales

Detailed Transaction Breakdown

The Executive has received a comprehensive disclosure from Morgan Stanley & Co. International plc, revealing a series of significant derivative transactions related to ENN Natural Gas Co., Ltd. The transactions occurred on 21 April 2026 and include both purchases and sales of products classified as “other types of derivatives.” The details are as follows:

Purchases

• 300 derivatives with maturity date 23 August 2027 at a reference price of RMB 21.0200, total value RMB 6,306.00
• 8,800 derivatives with maturity date 10 April 2028 at RMB 20.7518, total RMB 182,615.92
• 13,100 derivatives with maturity date 11 February 2028 at RMB 21.0211, total RMB 275,377.01
• 24,600 derivatives with maturity date 11 February 2028 at RMB 21.0100, total RMB 516,847.06
• 31,200 derivatives with maturity date 11 February 2028 at RMB 20.9742, total RMB 654,396.01
• 38,500 derivatives with maturity date 11 February 2028 at RMB 20.9831, total RMB 807,850.02
• 73,400 derivatives with maturity date 11 February 2028 at RMB 20.8709, total RMB 1,531,923.03
• 110,700 derivatives with maturity date 11 February 2028 at RMB 20.7282, total RMB 2,294,609.92

Sales

• 100 derivatives with closing out date 3 April 2028 at RMB 21.0200, total RMB 2,102.00
• 300 derivatives with closing out date 23 August 2027 at RMB 21.0200, total RMB 6,306.00

All resultant balances after these transactions are reported as zero, indicating these were client facilitation trades rather than proprietary positions.

Implications and Shareholder Considerations

• Privatisation Process: These transactions are taking place in the context of ENN Natural Gas Co., Ltd.’s privatisation, a major corporate event that can significantly affect share price and investor returns.
• Market Activity by Connected Party: Morgan Stanley & Co. International plc is a Class (5) associate of the Offeror. Its substantial trading activity in derivatives may be interpreted as a sign of heightened institutional interest or hedging in the lead-up to the privatisation, a factor that could influence market sentiment and share price volatility.
• Transaction Size and Notional Value: The cumulative notional value of the disclosed transactions exceeds RMB 6.2 million, representing significant derivative market activity around ENN Natural Gas shares.
• Potential Price Sensitivity: Such large-scale derivative dealings by a major financial institution, especially one connected to the privatisation process, may be considered price sensitive. Investors should monitor further disclosures closely as these activities can signal expectations around offer price, deal completion, or market positioning.
• No Proprietary Interests Held: All resultant balances post-transaction are zero, suggesting these were client-driven trades rather than proprietary positions. However, the scale and timing remain material given the ongoing privatisation.

Conclusion

The disclosure of substantial derivatives activities by Morgan Stanley & Co. International plc amid the privatisation of ENN Natural Gas Co., Ltd. is a development closely watched by investors. The scale of these trades, coupled with Morgan Stanley’s connected status to the Offeror, makes this a potentially price-sensitive event. Investors should remain vigilant for further updates or disclosures, as any shifts in investor positioning or changes to the privatisation terms could have significant share price implications.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult with professional advisers before making investment decisions based on corporate disclosures or market events.

View ENN ENERGY Historical chart here