Tour operator TUI weighs joining exodus from London market

TUI AG

06/12/2023 09:03

LONDON, Dec 6 (Reuters) - TUI, Europe's biggest travel
operator, said on Wednesday it was considering leaving the
London Stock Market and upgrading its listing in Frankfurt,
where trading in its shares has increased significantly and more
of its investors are based.
    The move, which could be put to shareholders in February,
would be a blow to London after Britain's biggest chip company
ARM floated in New York this year and building supplies firm CRH
and plumbing equipment company Ferguson shifted their main
listings to the United States. 
    Hanover-based TUI's dual listing stems from the merger of
its holiday business with Britain's First Choice Holidays in
2007 to create London-listed TUI Travel. Seven years later, the
companies fully merged.
    It said it had been approached by some of its shareholders
to discuss whether it would be better to move to a single
Frankfurt listing, where it would join the MDAX index of
companies beneath the top ranking DAX.
    TUI, which noted it had seen a shift in the trading of its
shares to Germany, said the move could result in a clearer
investment profile, potential benefits to European Union airline
ownership and control requirements, and reduced costs. 
    It said it was considering putting the change to
shareholders at its AGM on Feb. 13. At least 75% of the votes
cast would need to be in favour to trigger the move.
    The company said a London delisting would have no impact on
its image with British consumers.
    Shares in TUI rose 8.5% in Frankfurt and 8.4% in London in
early trading on Wednesday after it forecast a 25% jump in
operating profit in its new financial year.

 (Reporting by Paul Sandle
Editing by Mark Potter)
 ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters
Messaging: paul.sandle.thomsonreuters.com@reuters.net))