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TUI shareholders may get vote on end to London listing | Business News

Europe’s biggest travel operator has revealed that it may seek to pull out of the London Stock Exchange amid continuing questions over the City’s post Brexit future.

TUI said that it could put the idea to a shareholder vote at its AGM next February.

The German-based company revealed that it could seek to upgrade its listing in Frankfurt, where most of its investors are based, following an approach by a number of shareholders on the matter.

Its current dual listing is the result of the 2007 tie-up with First Choice, which later resulted in a full merger.

TUI said it did not believe that cancelling its London listing, which would mean an exit from the FTSE 100, would have an adverse effect on its image among UK consumers.

While its current market value would see TUI enter the second tier on the Frankfurt exchange, the company said such a move would cut costs and help it meet European Union airline ownership and control requirements.

At least 75% of investors would need to support the motion for it to pass.

A London exit would represent a blow to London, with firms including CRH and plumbing equipment company Ferguson shifting their main listings to the United States.

Chip designer ARM floated in New York this year in a snub to the City.

Shares in TUI rose by more than 8% in both Frankfurt and London on Wednesday.

Financial analysts credited the company’s forecast for a 25% jump in operating profits in its new financial year.

TUI reported that a surge in demand for travel over its previous 12 months had helped the figure reach €977m – up from €409m in 2022.

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This notice was published: 2023-12-06 10:11:00

By Sky News

Sky News is a British 24-hour information television channel, the first in Europe of its kind, launched on February 5, 1989 by the British Sky Broadcasting Company.

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