Tui decides on departure from London Stock Exchange

Shareholders - Tui decides on departure from London Stock Exchange

Tui, the world's largest travel group, is putting its shareholders to the vote on whether to withdraw from the London Stock Exchange. At the beginning of December, the management had already held out the prospect of moving the Tui share listing from London back to Frankfurt on the occasion of the presentation of its financial figures. The share could then possibly return to the mid-cap index, the MDax. The response from shareholders to a delisting in London was positive, according to the invitation to the Annual General Meeting on February 13. A vote is therefore to be held at the virtual meeting.

Unlike a few years ago, three quarters of Tui shares are now owned and traded in Germany, said CFO Mathias Kiep at the beginning of December. Several investors had recently suggested a change in the stock exchange listing. Tui had moved the listing of the share to London after the merger with the former tour operator subsidiary Tui Travel around nine years ago.

From the point of view of Tui's management, a listing only in Germany would reduce costs and bring further advantages, for example in complying with EU rules on the ownership and control of airlines. A delisting in London would have to be approved by the shareholders with a majority of three quarters of the votes.

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1. If Tui's shareholders approve the proposal during the Annual General Meeting on February 13, the Tui share listing could shift back to Frankfurt on the MDAX, which is a mid-cap index.
2. Initially, a significant portion of Tui shares were traded on the London Stock Exchange, but due to recent developments, around three quarters of the shares are now owned and traded in Germany.
3. TUI's decision to potentially delist from the London Stock Exchange and focus on a listing in Germany could help reduce costs and simplify compliance with EU rules related to airlines' ownership and control.
4. The city of Hanover, located in Lower Saxony, Germany, might benefit from Tui's potential relisting on the Frankfurt Stock Exchange, as TUI is one of the world's largest travel companies and a significant employer.
5. As a part of the decision-making process, TUI's management will likely monitor the performance of its shares on both the London and Frankfurt Stock Exchanges, considering factors such as market liquidity and investor interest to determine the best long-term strategy for TUI's shareholders.

Source: www.stern.de