Tui’s plan to exit the London stock market finds new backer

Efforts to prevent Tui from leaving the London stock market next week were dealt a blow after two shareholder advisory groups backed his decision to leave.

Investors in the travel company will vote at Tuesday’s annual general meeting on whether to approve a motion to exit Square Mile and leave it with its sole listing on the Frankfurt Stock Exchange.

Advisory group Pirc, which has a history of conflict with the board, nevertheless supported Mr Tui’s leadership and said delisting from London and relocating entirely to Germany would be “more in line” with the company’s ownership. , said it could reduce “trading volatility.”

Additionally, it said that a German-only listing would mean TUI would no longer have to comply with “two separate regulatory regimes”, which would create “inefficiencies and ongoing and recurring costs”.

Shareholder advisor ISS also backed the plan, noting that 77 percent of Tui’s shares were held in a German register as of November last year. Last year, just 10% of the company’s stock trades took place in London.

Tui’s impending defection will increase pressure on London’s stock market regulator and government officials. Last month, gambling giant Flutter announced plans to start trading in New York and move its “primary” listing across the Atlantic.

Other companies leaving the pipeline include packaging group Smurfit Kappa and education company Pearson.