Morgan Stanley Discloses Significant Derivative Dealings in ENN Energy Holdings Limited

Date: 4 May 2026

Summary of the Disclosure

Morgan Stanley Capital Services LLC, acting as a Class (5) associate connected with the Offeror in the ongoing privatisation of ENN Energy Holdings Limited, has disclosed multiple transactions involving derivatives tied to ENN Energy shares. These dealings were reported under the requirements of Rule 22 of the Hong Kong Code on Takeovers and Mergers.

Details of the Derivative Dealings

• Nature of Products: All transactions involved “other types of products” classified as derivatives.
• Type of Dealings: The transactions were described as “unsolicited client facilitation,” incorporating both purchases and sales.
• Dealings Executed:
  • 30 April 2026:
    • Purchase of 100 derivatives maturing on 30 July 2027 at a reference price of \$61.50 (total \$6,150.00).
    • Purchase of 1,200 derivatives maturing on 1 June 2027 at a reference price of \$60.9583 (total \$73,150.00).
    • Purchase of 7,300 derivatives maturing on 13 November 2026 at a reference price of \$61.3334 (total \$447,733.70).
    • Sale of 100 derivatives maturing on 30 July 2027 at a reference price of \$61.50 (total \$6,150.00).
    • Sale of 1,200 derivatives maturing on 1 June 2027 at a reference price of \$60.9583 (total \$73,150.00).
    • Sale of 7,300 derivatives maturing on 13 November 2026 at a reference price of \$61.3334 (total \$447,733.70).
• Resultant Balance: All transactions resulted in a net zero balance; Morgan Stanley does not retain any open derivative positions after these trades.
• Account Ownership: All dealings were conducted for Morgan Stanley Capital Services LLC’s own account.
• Ultimate Ownership: Morgan Stanley Capital Services LLC is wholly owned by Morgan Stanley.

Key Points and Price-Sensitive Information for Shareholders

• Privatisation Context: These transactions are linked to the privatisation of ENN Energy Holdings Limited via a scheme of arrangement, a process that could significantly impact the company’s share price and the interests of shareholders.
• Class (5) Associate Status: Morgan Stanley Capital Services LLC is officially designated as a Class (5) associate, indicating a connection to the Offeror and possibly bearing implications for the outcome of the privatisation.
• Volume and Value: The notional amount of derivatives traded is substantial (notably, \$447,733.70 for a single position), suggesting that significant institutional activity is occurring around ENN Energy’s shares, which may reflect or anticipate future price movements.
• No Net Position: Despite the large transaction sizes, Morgan Stanley ended with a zero balance, indicating these were matched trades for client facilitation and not proprietary directional bets. This could mean the bank is providing liquidity rather than expressing a directional view on ENN Energy’s share price.
• Potential Impact: While Morgan Stanley’s matched trades do not directly affect its own exposure, the existence and size of these dealings may signal heightened activity and interest in ENN Energy shares, especially in light of the pending privatisation. Investors should monitor further disclosures and any changes in the Offeror’s or associates’ positions.

What Investors Should Watch For

• Further Disclosures: Continued disclosures by connected parties are likely as the privatisation process advances. Any shift from matched trading to open positions could be highly price-sensitive.
• Scheme Progress: Developments in the privatisation scheme may drive volatility in ENN Energy’s share price. Investors should stay vigilant for formal announcements or changes in the deal structure.

Conclusion: The disclosed transactions indicate significant institutional activity and liquidity provision in ENN Energy derivatives amidst its privatisation. While Morgan Stanley’s net position remains neutral, the size and timing of these dealings, in the context of the ongoing privatisation, are noteworthy and may be relevant to shareholders and investors considering the company’s valuation and future prospects.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own research and consult professional advisers before making investment decisions. The information is based on disclosures as of 4 May 2026 and may be subject to change.

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