Key Disclosure: Morgan Stanley Capital Services LLC Deals in ENN Natural Gas Co., Ltd.

On 30 April 2026, a public disclosure was made regarding significant dealings in the shares of ENN Natural Gas Co., Ltd. as part of its privatisation process by way of a scheme of arrangement. This disclosure was received by The Executive under Rule 22 of the Hong Kong Code on Takeovers and Mergers.

Key Points from the Disclosure

• Disclosing Party: Morgan Stanley Capital Services LLC, classified as a Class (5) associate connected with the Offeror in the privatisation scheme.
• Date of Transaction: 29 April 2026
• Nature of Securities: Derivatives relating to A shares of ENN Natural Gas Co., Ltd.
• Transaction Details:
  • Product Description: Other types of derivative products
  • Nature of Dealings: Unsolicited client facilitation involving both a purchase and a sale
  • Number of Reference Securities: 5,000 for both the purchase and sale transactions
  • Maturity/Closing Out Date: 8 July 2029
  • Reference Price: \$21.1782 per share
  • Total Amount Paid/Received: \$105,891 for each transaction
  • Currency: Transactions were carried out in RMB
  • Resultant Position: Zero balance post-transaction (no outstanding position held after these dealings)

Implications for Shareholders

• Price Sensitivity: The disclosure is related to the ongoing privatisation of ENN Natural Gas Co., Ltd., an event that is structurally significant for shareholders as it can impact share value and liquidity.
• Nature of Dealings: The dealings involve derivatives and were conducted as unsolicited client facilitation. Notably, the position was neutralized (bought and sold an equal amount), resulting in no net position for Morgan Stanley Capital Services LLC.
• Connected Party: Morgan Stanley Capital Services LLC is an associate of the Offeror, which may indicate ongoing institutional activity related to the privatisation scheme. However, the zero resultant balance suggests that these transactions were likely for hedging or client facilitation rather than speculative positioning.

Potential Share Price Impact

• While the privatisation process remains a major event that could move the share price, these specific dealings by a connected party are not directional (no net position held) and were for facilitation purposes.
• Investors should monitor further disclosures, as any substantial accumulation or disposal of shares/derivatives by connected parties could become price-sensitive.
• This report does not indicate a change in control or a significant directional bet by Morgan Stanley Capital Services LLC.

Additional Details

• Ownership: Morgan Stanley Capital Services LLC is ultimately owned by Morgan Stanley.
• Regulatory Context: Disclosure is in compliance with the Hong Kong Code on Takeovers and Mergers.

Disclaimer: This article is for informational purposes only. It is not investment advice. Investors should conduct their own research or consult a professional adviser before making investment decisions. The writer and publisher accept no liability for actions taken based on this report.

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