By John Ensor •
Published: 05 Jan 2024 • 10:45
TUI aircraft taking off.
Is it time for a strategic shift in TUI’s stock market presence? In a recent statement, TUI, the world’s largest tour operator, revealed plans to propose an exit from the London Stock Exchange to its shareholders.
The proposal was announced on Thursday, January 4, focusing on a potential departure from the London Stock Exchange.
The decision will be made during the Annual General Meeting of Shareholders on February 13. With its headquarters located in Hanover, Germany, TUI has played a major role in the travel industry since it began.
The proposal, according to TUI, is aimed at simplifying ‘the structure of the group’s stock prices.’ This simplification involves discontinuing the listing on the London Stock Exchange.
Instead, TUI plans to continue its presence on the Frankfurt Stock Exchange, joining the ‘Prime Standard’ market segment. This move also includes the integration into the MDAX, a stock index of medium-sized companies.
TUI’s decision stems from investor inquiries regarding the optimality of the current dual listing. It’s observed that there’s been a significant shift in TUI’s share transactions and liquidity.
Currently, about 77 per cent of share transactions are processed through the German share register. Conversely, less than 25 per cent of TUI’s share trading occurs in the UK.
Mathias Kiep, TUI’s CFO, remarked, ‘After the successful merger of TUI AG and TUI Travel PLC at the end of 2014, the dual listing was the right thing to do and offered many advantages, but now most of the liquidity of our shares has now moved to Germany.’
He further explained the decision, stating, ‘We followed the suggestions of our shareholders and had extensive discussions.
‘Ending the London listing would offer understandable benefits for investors and society: simplifying structures, improving liquidity and indexation, and supporting the ownership of our airlines in the European Union.’
The anticipated timeline indicates the beginning of trading on the Frankfurt Stock Exchange’s Prime Standard market segment around April 8. The exit from the London Stock Exchange is scheduled for June.
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Originally from Doncaster, Yorkshire, John now lives in Galicia, Northern Spain with his wife Nina.
He is passionate about news, music, cycling and animals.
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