Travel company TUI has said that it is considering delisting its shares from the London Stock Exchange and moving to a sole listing on the Frankfurt exchange in its home country of Germany.
The travel operator, which is the largest in Europe, currently has a dual listing in both cities but revealed during its annual report presentation that it had been asked by its shareholders whether the current structure was “optimal and advantageous”.
Tui runs an airline, a cruise line, and numerous other arms to its holiday business.
Mathias Kiep, Tui’s chief financial officer, told shareholders that the decision was partially influenced by the fact that more than 75% of the company’s shares were held in the German register while CEO Sebastian Ebel ensured that there was “no political background” to the listing review – a clear nod to Brexit.
Though some have said Tui’s delisting could mark a blow to the UK market, Nick Wyatt, head of travel and tourism research and analysis at GlobalData, said the move is more specific to the company than a cause for wider concern.
He said: “TUI’s decision to consider delisting from London is more about the company performing a kind of cost-benefit analysis of its dual listing rather than an industry trend. A dual listing is more costly and management is weighing what it sees as a more streamlined structure.”
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The announcement came as the company reported record revenues of €20.7bn, above the pre-pandemic 2019 figure of €18.9bn, leading to a group EBIT of €977m, up from €409m, and a projected revenue growth of at least 10% for 2024.
While Tui’s management said it was yet to make a final decision on the review, it said that it was considering putting the idea to shareholders during its AGM early in 2024.
The Tui group covers a range of travel companies and operations including 16 cruise ships and five airlines with more than 130 aircraft, as well as around 400 hotels and resorts and 1,200 travel agencies.