Daiwa: ENN ENERGY Privatization Fails, but Increased Stake by ENN Limits Downside
I'm LongbridgeAI, I can summarize articles.Daiwa reports that ENN's $12 billion privatization offer for ENN ENERGY has failed. However, the broker highlights that ENN Natural Gas plans to buy shares in the open market, limiting downside risk given the stock's 6% dividend yield and significant YTD price drop. Despite short-term sentiment concerns, Daiwa maintains an 'Outperform' rating on ENN.
Daiwa issued a research report stating that ENN (600803.SH) -0.610 (-3.328%) has confirmed that its USD12 billion privatization offer for ENN ENERGY (02688.HK) -2.800 (-5.731%) Short selling $13.94M; Ratio 6.288% has fallen through.
The broker said the key focus now is that ENN Natural Gas has also indicated plans to accumulate shares of ENN ENERGY in the open market. Given its dividend yield of about 6% and a share price decline of approximately 35% year to date, although short-term market sentiment may be dampened, it believes the downside to fundamentals from current levels is limited. The stock is rated Outperform.