Tui shareholders vote to quit London listing in favour of German Stock Exchange
Travel company Tui's shareholders have voted quit its London listing and concentrate on Germany.
On Tuesday morning, the firm said pulling its shares from UK trading would offer "understandable advantages", and reported later 98.3% majority in favour of exclusively listing in Frankfurt during an afternoon vote. The plan needed three-quarters of the total vote to get approved.
Tui plans to end its stock market listing London on June 24, when it also hopes to be part of the Frankfurt Stock Exchange's Dax index. Mathias Kiep, chief finance officer of Tui Group, esaid "We are pleased that Tui's shareholders have followed our recommendation and voted in favour of the delisting."
"They have thus also followed the proposal of the investors who brought this issue to our attention last summer." He believes that a significant amount of the Tui share trading had already moved to Germany.
He added: "The advantages of a main listing in Frankfurt are obvious: the structures are simplified, liquidity is centralised and improved in one trading venue, and the simplified structure supports the EU requirements for ownership and control of our airlines."
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This week Tui announced that its pre-tax loss had been reduced from £232.3 million in the last three months of 2022 to £87.9 million during the same period in 2023. The company also revealed it had made its "highest ever revenues" of £3.7 billion, a 14.7% increase from the previous year.
Around 3.5 million customers used Tui's services, including planes, cruise ships and package holidays, marking a 6% rise from the year before, despite prices going up. The firm said: "Average selling price continues to hold up well, highlighting the strong demand for our products and the consumers' continued willingness to prioritise spend on travel and holidays,"
Tui also stated it is prepared to shift resources away from areas near Israel if conflict in the region escalates. The company said: "We continue to monitor developments both in the Middle East and around the Arabian Peninsula. We will retain the option to flexibly adjust capacity from the eastern to western Mediterranean should there be a further escalation of the conflict in this region which has a significant and prolonged effect on customer demand."
Chief executive Sebastian Ebel commented: "We are on track, we are gaining customers and we are growing. We are accelerating our transformation quarter by quarter."
"We have goals that we are consistently implementing. In a persistently challenging environment, people's high willingness to travel ensures strong economic development in all areas of the group. This reiterates our expectations for the year as a whole. We want to increase our revenue by at least 10% and our operating result by at least 25%."
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