German travel giant TUI to quit London listing
FRANKFURT: German travel group TUI will abandon its listing on the London Stock Exchange and be primarily listed in Frankfurt, the company said Tuesday, after reporting a strong first quarter.
LEINFELDEN-ECHTERDINGEN, Germany: This file photo taken on July 28, 2023 shows the logo of travel company TUI displayed at the office of a travel agency at Stuttgart Airport in Leinfelden-Echterdingen near Stuttgart, southwestern Germany. -- AFP.
Shareholders overwhelmingly voted in favor of de-listing from London, TUI said in a statement, ending the company’s dual-listing structure.
TUI’s exit is the latest setback to the UK exchange, which has struggled to defend its status as a preeminent global finance hub since Brexit and has seen a series of high-profile corporate departures.
Online betting giant Flutter is planning to switch its main listing from London to New York, while British chip designer Arm launched a blockbuster IPO in New York last year. Building materials giant CRH also switched its primary market listing to New York from London last year.
TUI’s chief financial officer Mathias Kiep welcomed the vote outcome, saying it would lead to a “simplified structure” and improved liquidity for the group. He noted that there had been “a marked shift in liquidity” from the UK to Germany in recent years, raising the question of whether the dual listing still made sense for the company. TUI expects to enter Frankfurt’s MDAX index as a single listing on June 24, when its listing on the London Stock Exchange will end.
Tuesday’s vote came after the group reported revenues of 4.3 billion euros ($4.6 billion) in the first quarter of its financial year, a 15-percent jump on a year earlier, as TUI continues to benefit from a post-pandemic travel boom. Underlying profit before interest and tax, normally negative in the first quarter due to seasonal factors, was “positive for the first time” at six million euros, TUI said, thanks to “sustained demand for travel with higher prices and rates”. TUI, which offers everything from hotel stays to cruises and charter flights, added that it had welcomed some 3.5 million guests over the first quarter, an increase of six percent year-on-year. The group confirmed its full-year outlook, expecting revenues to grow by at least 10 percent. — AFP.
