A dramatic proposal from a key investor is stirring the energy market rapidly, sparking tension – what surprises lie ahead?
ENN Energy Holdings Ltd. has received a proposal to take the company private from its largest investor, setting the gas distributor’s value at roughly HK$90.5 billion. A recent filing indicates the offer includes HK$24.50 in cash and approximately 2.94 H shares for each share not already held by the investor. This proposal values ENN Energy shares at around HK$80 per share, a near 35% premium compared to the closing price on March 18.
This move is part of a restructuring plan in light of ENN Natural Gas’s planned listing in Hong Kong. The company owns close to 34% of ENN Energy through its Hong Kong investment unit. As a major importer of liquefied natural gas in China, ENN Natural Gas has announced that it will maintain the current offer without any changes and aims to remove ENN Energy from public trading once the arrangement is complete.
Trading in ENN Energy shares is set to resume on Thursday. The firm first entered the public market in 2001, raising HK$238 million during its initial offering. Later, it was included in a prominent index alongside well-known companies from various sectors. In fiscal 2024, ENN Energy reported a net income of nearly 5.99 billion yuan, reflecting a 12% decrease from the prior year as weaker gas prices affected performance amid lower domestic demand.
Seasoned analysts are watching closely as this transaction may reshape key investor perspectives going forward.
