TUI Group is considering whether delisting from the London Stock Exchange and moving to the Frankfurt bourse would be "in the best interest of shareholders", given that most of its stock is already traded in Germany.
"TUI has been recently approached by certain shareholders to discuss and understand whether the current listing structure is optimal and advantageous for the company, and if the simplification of the listing structures and an inclusion in the MDAX [index] would be beneficial for TUI," the holding said in its annual report. "Potential advantages of simplification of the listing structures and an inclusion in the MDAX are the centralisation of liquidity, providing a clearer investment profile under a single listing, potential benefits to European Union airline ownership and control requirements, potentially enhancing TUI AG's equity profile with an expected prominent position in the MDAX50 and creating efficiencies as well as reducing costs."
The firm stressed that it had not made any decision yet, but it could include a UK delisting on its agenda for its annual general meeting planned for February 13, 2024.
"Around 75% [of our stock] is now traded on the German market, and around 75% of the shares are held in Germany. And there were comments when we were on a roadshow where people asked us, why do you still have this dual listing structure?", Chief Financial Officer Mathias Kiep said during an investor call.
The group said its ownership structure "has evolved significantly with a notable liquidity migration from the UK to Germany", coinciding with the exit of the United Kingdom from the European Union.
In order to retain the EU domicile of its affiliate airlines (TUI fly (Germany), TUI fly (Netherlands), TUI fly (Belgium), and TUI fly Nordic), the group has to remain owned and controlled by EU nationals or companies. The group also owns a 100% stake in TUI Airways.
