Leisure giant TUI is considering a delisting from the London stock exchange in favour of an upgraded listing in Frankfurt.
The company says there has been a shift in the ownership of its shares on the exchanges and a “notable liquidity migration” from the UK to Germany, with over 75% of shares held and traded there.
While there has been evidence of this movement since the merger with the UK’s TUI Travel, initially unveiled in 2014, it has become more significant in the past four years.
“TUI has been recently approached by certain shareholders to discuss and understand whether the current listing structure is optimal and advantageous for the company,” states TUI in its full-year financial statement.
It adds that shareholders have queried whether simplifying the listing structure and inclusion on the Frankfurt exchange would be more beneficial.
TUI says the possibility of delisting from London in favour of Frankfurt is being considered by the executive board for inclusion on the annual general meeting agenda for 13 February next year.
It points out that there are possible advantages including “potential benefits to European airline ownership and control requirements”.
“EU ownership is, as an airline business, quite important,” says chief financial officer Mathias Kiep. ”So that would be supported.”
TUI says the simplification could provide a “clearer investment profile”, while also creating efficiencies and reducing costs. Delisting from the UK would need at least a 75% majority approval from shareholders.
