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<Research>BofAS: ENN ENERGY Privatization Collapse Hurts Corporate Governance Image, Implies Parent May Sacrifice Minority Interests
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The privatization plan of ENN ENERGY (02688.HK) collapsed, BofA Securities said in a research report. ENN (600803.SH) believed that further extending the final deadline of the plan would create greater uncertainty and restrict its flexibility under the Takeovers Code. Taking into account changes in the macro environment and business plans, ENN (600803.SH) decided to terminate the privatization transaction. The broker said terminating the privatization deal would affect ENN ENERGY's corporate governance image, implying that the parent company may sacrifice the interests of minority shareholders in exchange for its own benefits. The termination also reflects that, as the structural decline in natural gas costs following the Middle East conflict may take longer to materialize, natural gas distributors are facing mounting challenges. However, ENN (600803.SH) announced that it will increase its stake in ENN ENERGY (02688.HK). The broker understood that the scale of shareholding increase over the next 12 months will not exceed 2%, otherwise it would trigger a general offer, while any future privatization plan would also require a 12-month cooling-off period. Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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