Tui Considering Delisting from London Stock Exchange
Tui, one of the largest tour operators in the world, is contemplating leaving the London Stock Exchange, dealing a blow to the city’s position as a global financial hub. Shareholders have approached the German company to discuss the possibility of delisting from the London Stock Exchange amid concerns about London’s declining status in the financial world.
Over the past four years, Tui has noticed a significant shift in trading activity from the UK to Germany, prompting the consideration of a single listing in Frankfurt. The advantages of such a move would include centralized liquidity, a clearer investment profile, and reduced costs. The board of Tui plans to discuss the matter further and may hold a vote at the annual shareholder meeting in February.
Tui’s potential delisting adds to the growing concerns surrounding the future of the London Stock Exchange. In the past 18 months, several companies have chosen to move their primary listings to New York, further diminishing London’s allure as a financial center. Losing Tui would be a significant blow for the London Stock Exchange, which has been grappling with an exodus of companies and poor performance for London-listed stocks.
Currently, London is in competition with Amsterdam and Paris to become Europe’s largest share trading center and most valuable stock market. Should Tui decide to delist from the London Stock Exchange, it would undermine the city’s efforts to retain its status as a leading financial hub.
Tui, headquartered in Hanover, owns various assets including hotels, cruise ships, airlines, and travel agencies, employing over 60,000 staff. The company recently reported strong financial results with a market value of €3.2 billion ($3.5 billion) and record revenue of €20.7 billion ($22.3 billion) for the year ending September 30. Tui foresees robust growth in market share, sales, and profit for the current financial year.
Following the announcement of potential delisting, Tui’s shares in London experienced a surge of almost 10%. However, they have declined by approximately 28% over the course of the year due to concerns surrounding the company’s debt. Tui’s year-end net debt stands at €2.1 billion ($2.3 billion), a decrease of €1.3 billion ($1.4 billion) compared to the previous year.
As Tui weighs its options regarding its listing, the future of the London Stock Exchange remains uncertain. London will need to address the challenges it currently faces if it hopes to maintain its position as a leading global financial center.
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