(qlmbusinessnews.com Thurs, 7th Dec, 2023) London, UK —
Major Blow to London's Appeal: Tui Considers Exit from Stock Exchange
Tui, one of the world's leading travel companies, is contemplating leaving the London Stock Exchange in favor of a listing in Frankfurt, as some shareholders question the advantages of its UK listing. The potential move adds to concerns about London's appeal for major firms, with several choosing overseas exchanges in recent years. Tui, with a market value of £3.2bn, already has a secondary listing in Frankfurt and may propose the shift to a shareholder vote next year. The company emphasized that the decision has no political background and is not related to Brexit.
Tui's CEO, Sebastian Ebel, highlighted the UK travel market's continued significance despite the consideration of delisting. The move, if approved, could impact London's ability to attract significant businesses, following recent listings in the US by Arm Holdings, CRH, and Ferguson. Tui's full-year results indicated a review of its listing structure for potential benefits amid changes and mergers within the group. The company also noted a notable liquidity shift from the UK to German stock markets in recent years, with potential benefits for Tui's shares and regulatory advantages in dealing with EU regulations on airline ownership.
The decision, however, would require the support of at least 75% of shareholders and could signal a broader trend of London losing major listings. Despite the potential shift, Tui reported strong financial results, expecting a full-year earnings increase of at least 25% after posting significant profits supported by higher sales and prices.
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