Shareholders of Europe’s largest travel company have overwhelmingly supported the company’s plan to withdraw its listing from the London Stock Exchange.
TUI had announced in december It revealed it plans to ask investors this question at its general meeting this month, raising further eyebrows over the City of London’s post-Brexit future.
The company argued that removing its FTSE 100 stake would reduce costs and help it meet European Union (EU) airline ownership and control requirements.
However, the central position was that a single German listing would better reflect German ownership and trading patterns, as most German investors are domiciled in the home market.
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The company added that it does not believe the cancellation of the London listing will have a negative impact on its image among UK consumers.
It was created in 2007 by combining Germany’s TUI and the UK’s First Choice Holidays.
At least 75% of investors needed support for the motion to pass.
The City of London has lost its listing to the US in recent years.Photo: Reuters
More than 98% supported the board.
Hours earlier, Hannover-based TUI had reported better-than-expected quarterly results on strong travel demand.
It reported an operating profit of €6m (£5.1m) in the slow period from October to December.
TUI suffered a loss of 153 million euros in the same period last year.
The City of London has lost its listing to the US in recent years.Photo: Reuters
TUI has distanced itself from speculation of disrespect towards the UK, but its delisting will add to the list of companies seeking to extract wealth from London.
Paddy Power and Betfair owner Flutter Entertainment, which had been aiming to list in the US, are expected to abandon City altogether in the medium term.
Other companies that have exited for major listings overseas include CRH, an Ireland-based building materials company with a focus on the United States.
Britain’s largest semiconductor company, ARM, surfaced in New York last year.
The government has responded by launching plans to make Britain even more attractive, but has been accused of dragging its feet on the issue.
PC Travel Agency founder Paul Charles believed TUI’s withdrawal could damage the company’s image.
“I think it would be retrograde for a traditional brand that has been successful in the travel industry for many years to move away from a market like the UK, where they have a vested interest in high returns from British consumers,” he said.
Meanwhile, Tom Bacon, a partner at global law firm BCLP, said of the move: “London remains the largest exchange in Europe by a variety of indicators, and in fact, in terms of activity in 2023, it will be the largest exchange in Europe. “It has performed better than other European exchanges such as , Paris and Amsterdam.” . ”