LONDON, UK – German travel company TUI announced on Tuesday that it is considering delisting from the London Stock Exchange (LSE) and focusing its trading solely in Germany. The move comes as the company has seen a significant shift in the trading of its shares, with the majority of transactions now settled in Germany.
TUI currently has a dual listing between London and Frankfurt, but last year the company was approached by investors questioning whether this arrangement was still optimal. The shift in the company’s ownership structure and a decrease in liquidity from the UK were cited as reasons for the potential delisting.
According to TUI Chief Financial Officer Mathias Kiep, around 77% of transactions in TUI shares are currently settled via Germany, with the UK accounting for less than a quarter. This shift in liquidity prompted shareholders to approach the company about the potential move to Frankfurt.
The potential delisting of TUI has raised concerns about the attractiveness of the UK market for companies. London has seen a number of delistings and high-profile IPO snubs in the past year, with the number of applications to list in the city falling to a six-year low in 2023.
However, despite these concerns, some experts believe that the specific reasons for TUI’s potential delisting should be taken into account. London, as the largest exchange in Europe, still remains a contender, outperforming other European exchanges in terms of activity in 2023. TUI’s potential delisting should therefore be viewed in the context of the company’s specific situation, including the legacy merger of TUI Travel plc and TUI AG in 2014.
It is clear that the potential delisting of TUI from the London Stock Exchange will have implications for both the company and the UK market. The decision, driven by shifts in liquidity and the company’s history, highlights the complexities and considerations involved in listing on different stock exchanges.