Billionaire Wang Yusuo's $11.6 billion ENN Energy takeover fails on regulatory delays (updated)

ENN Energy Holdings

12/06/2026 12:30

Suitor offered nearly HK$60 billion for the remaining stake in ENN Energy
ENN Natural Gas drops plan for second listing in Hong Kong
Regulators are applying greater scrutiny to large-scale restructuring - Analyst
Adds analyst quote in paragraph 5
By Rajasik Mukherjee and Roushni Nair

    June 12 (Reuters) - Chinese billionaire Wang Yusuo's plan to take full control of ENN Energy 2688.HK through ENN Natural Gas 600803.SS collapsed on Friday, scuttling a deal that valued the Hong Kong-listed firm at $11.6 billion.
The offer lapsed after failing to secure preconditions, including approval in principle from the Hong Kong Stock Exchange and clearances from Chinese regulators, nearly a year after the application process began, the companies said.
ENN Natural Gas, the top shareholder of ENN Energy with a 34% stake, had offered HK$59.48 billion ($7.59 billion) for the remaining shares at HK$80 apiece — a 47.6% premium to the stock's last close before the offer was disclosed.
The deal aimed to streamline ENN Natural Gas' operations at a time when gas operators face pressure to integrate their upstream and downstream resources to better respond to shifts in the global supply chain.
The collapse means ENN Natural Gas loses an opportunity to simplify its ownership structure, while "investors may interpret this as another sign that regulators are applying greater scrutiny to large-scale restructuring and privatisation," said Glenn Yin, director of research at ACCM.
The companies had extended the long-stop date earlier this year but said the timeline for approvals remained uncertain despite "substantial efforts".
As a result, ENN Energy will remain listed in Hong Kong, and no scheme document will be issued.
Meanwhile, ENN Natural Gas, which had filed in December for a secondary listing in Hong Kong as part of the broader consolidation plan, said it will also not proceed with that application.
Hong Kong takeover rules bar the bidder from launching another offer for ENN Energy for 12 months without regulatory consent.
Despite the setback, ENN Natural Gas said it intends to gradually increase its shareholding in ENN Energy, depending on market conditions.
Both companies are part of ENN Group, one of China's largest private energy groups, controlled by Wang Yusuo, whose net worth Forbes estimates at $8 billion.


($1 = 7.8355 Hong Kong dollars)


 (Reporting by Rajasik Mukherjee in Bengaluru; Editing by Vijay Kishore)
 ((Rajasik.Mukherjee@thomsonreuters.com;))