Revisiting ENN Energy (2688 HK)'s Scheme & Parent's H-Share Listing

• We are two weeks shy of a year since ENN Energy (2688 HK) first announced a cash/scrip Offer from ENN Natural Gas (600803 CH) (ENN-NG) its largest shareholder.

• The pushback, from the onset, was that the majority of the “Consideration” was in scrip into newly-listed ENN-NG H-shares.

• Pre-Con approvals now received from SAFE, NDRC, and MoC. CSRC, the listing watchdog, has yet to sign off. The Scheme Doc dispatch has thrice been delayed, now due ~30th April.

The Trade:

• This remains a challenging trade.

• CSRC should not be problem. The delay is curious though.

• The Scheme could get voted down, but that’s an outside bet.

• No matter how I slice it, I see upside potential here; but it’s not a strong conviction trade.

• ENN’s FY25 numbers should be out in a couple of weeks.

• My bet is that the FY25 dividend - FY24’s was HK$2.35/share - will also be added to terms.