Tui to exit London after shareholders back top brass

Tui shareholders have voted to ditch the London Stock Exchange in favour of Germany, in the latest major blow to the embattled bourse.

Shareholders voted 98.35 per cent in favour of the decision at the travel giant’s annual general meeting, having required 75 per cent backing for the plans to go through.

Dual-listed Tui announced in December it was considering exiting London’s premier index in favour of Frankfurt.

It’s board backed the plans in early January, citing significant “liquidity migration” from England to Germany in recent years, leaving the decision up to shareholders at today’s AGM.

Following the vote, the next step will be the start of trading of the TUI share in the Prime Standard in Frankfurt at the beginning of April. The share is expected to be admitted to the MDAX on June 24 and will be struck off the London exchange on the same date.

Mathias Kiep, CFO of TUI Group, said: “We are pleased that TUI’s shareholders have followed our recommendation and voted in favour of the delisting. They have thus also followed the proposal of the investors who brought this issue to our attention last summer.

“Trading in the TUI share had already shifted to Germany to a large extent. The advantages of a main listing in Frankfurt are obvious: the structures are simplified, liquidity is centralized and improved in one trading venue and the simplified structure supports the EU requirements for ownership and control of our airlines.

He added: “Nevertheless, the UK market remains one of our core activities and this has no impact on our strategy of a broad shareholder base.” 

The move from Europe’s biggest travel operator is yet another kick in the teeth for London equity markets, following a difficult year.

Big players including the Cambridge chip giant Arm and London-based commodities broker Marex have chosen to snub the UK capital in favour of New York.

Gambling giant Flutter also plans to move its primary listing to the Big Apple, after completing a secondary listing there last year. And YouGov and Plus500, two staples of the London market, are publicly considering an exit to sunnier shores.

Last year, only 23 firms listed on the London Stock Exchange, down from 45 in 2022 and 119 the prior year.

Delphine Currie, Partner at Reed Smith, said: “The vote by Tui shareholders to de-list from the London Stock Exchange is undeniably a blow for the London markets.”

“Whilst some may argue that the move makes sense for Tui, which already has 77 per cent of its shares listed in Frankfurt and its shareholders found the dual-listing structure confusing, it is yet another example of a high-profile company turning its back on London.”

“In 2023, a number of other major companies chose to list elsewhere, a worrying trend and further evidence that the London Stock Exchange is in danger of losing its position as a premier global market.”

Tui’s decision comes after the travel company posted record earnings and revenues this morning, in its quarterly results, driven by strong holiday demand.

The airline and package holiday provider’s first quarter revenue came in at a historic €4.3bn (£3.7bn), up by 15 per cent year-on-year.

Shares rose as much as 6 per cent at market open, falling slightly to just above 3 per cent mid-morning ahead of the AGM.