Travel giant Tui is considering moving its stock exchange listing from London to Frankfurt following a "notable liquidity migration" since the merger of its German and UK businesses in 2014.
Noting that the shift in liquidity has gained momentum during the last four years, Tui said it will put the proposal to a vote of its shareholders at the company's annual general meeting in February. A delisting from London will only be possible if 75% of votes are cast in favour.
Tui has suggested that the move from London's FTSE 250 index to Frankfurt's MDax, the index directly below Germany's flagship Dax, could yield benefits including lower costs.
READ MORE: Tui dividend payments remain well off in the horizon
“The executive board’s focus is to provide an attractive, long-term listing for Tui AG which aligns with its ownership and current liquidity and delivers benefits to all shareholders,” the company said.
“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.”
Tui shares in London were trading nearly 12% higher this morning after Europe's biggest package holiday operator reported that its profits more than doubled in the latest financial year.
Underlying profits hit €977 million (£836m) during the year to 30 September, more than double 2022’s €409m. Full-year revenues also surged to €20.6 billion versus €16.5bn previously.
Passenger numbers in the fourth quarter rose by 200,000 to 7.8 million with an average load factor of 92%, up by one percentage point on the fourth quarter of the previous year. The company said it expects a strong performance in the coming year with solid winter and summer bookings likely.
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