Tui Group has confirmed plans to de-list from the London Stock Exchange this year, with an upgrade to the ‘Prime Standard’ market and top-tier MDAX index on the Frankfurt Stock Exchange.
The group gave notice it was considering quitting the LSE in December when issuing annual results for the 12 months to September, noting it was “recently approached by shareholders” and asked whether its current listing “is still advantageous”.
It has now confirmed it will put the proposal to a shareholder vote at its Annual General Meeting on February 13, with a de-listing expected to take place in June.
The company said the move would reflect a “notable liquidity migration from the UK to Germany”, with around 77% of share transactions conducted directly through the German share register and “less than a quarter of trading in Tui shares carried out in the form of UK depositary interests”.
It will also mark the cutting of its corporate links with the UK, with the last remaining UK member of its executive board, Dave Burling, due to step down at the end of the year.
Chief financial officer Mathias Kiep (pictured, left) said: “Following the successful merger of Tui AG and Tui Travel PLC at the end of 2014, the dual stock exchange listing was the right decision and offered many advantages.
“In the meantime, the majority of our share’s liquidity has migrated to Germany. We have followed the suggestions of our shareholders and have held extensive discussions. Terminating the listing in London would offer clear advantages for investors and the company: Simplification of structures, improvement in liquidity and indexation as well as benefits for the EU ownership of our airlines.
“On this basis and after intensive analysis, we recommend that our shareholders vote in favour of the proposed resolution at the upcoming Annual General Meeting. However, in the best sense of an Annual General Meeting, it remains the decision of our shareholders.”
Subject to approval, the move to the Prime Standard segment of the Frankfurt Stock Exchange would be expected on or around April 8, with inclusion in the MDAX likely to coincide with the LSE de-listing in June.