TUI to Seek Shareholder Approval to Delist from London Stock Exchange -- Update

By Ian Walker

TUI AG confirmed that it plans to seek shareholder approval to delist its shares on the London Stock Exchange and make Frankfurt its prime exchange, the latest in a line of companies quitting the exchange.

The London-listed German travel operator--which first flagged that it was considering the plan alongside its fiscal 2023 earnings on Dec. 6--said Thursday that it will put forward proposals to simplify its listing structure at its annual general meeting next month, including upgrading its listing in Germany to Frankfurt's prime standard market segment.

If approved by shareholders on Feb. 13, TUI said it would expect shares to delist in London in June and move to Frankfurt's prime standard market around April 8.

TUI said in December that some shareholders had requested that it review the benefits of a simplified listing structure.

It said Thursday that around 77% of trading in its shares takes place directly via the German share register and less than a quarter via U.K. depositary interests.

"Terminating the listing in London would offer clear advantages for investors and the company: simplification of structures, improvement in liquidity and indexation as well as benefits for the EU ownership of our airlines," Chief Financial Officer Mathias Kiep said.

"On this basis and after intensive analysis, we recommend that our shareholders vote in favor of the proposed resolution at the upcoming annual general meeting."

The delisting plan would be a major blow to the London Stock Exchange after some major companies have switched their listings over to New York.

Irish building-materials supplier CRH, which was listed on London's FTSE 100 index, moved its main listing to New York in September. Flutter Entertainment--which houses FanDuel, PokerStars, and Paddy Power among its brands--is also planning to move to the U.S., while British chip maker Arm Holdings chose New York over London for its stock market return.

The London Stock Exchange didn't immediately respond when approached for comment by Dow Jones Newswires.

Shares at 1537 GMT were down 3.0 pence, or 0.7%, at 603.50 pence, giving the company a market capitalization of around 3.06 billion pounds ($3.88 billion). They are currently down 22% over the past 12 months.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

January 04, 2024 11:09 ET (16:09 GMT)

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