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

Efforts to prevent Tui from spun off the London stock market next week have been dealt a blow after two shareholder advisory groups backed its decision to leave.

The tour operator’s investors are due to vote at their annual meeting on Tuesday on whether to approve a proposal to exit the Square Mile, leaving the company with a sole listing on the Frankfurt Stock Exchange.

However, advisory group Pirc, which has a history of taking on boards, swung behind Tui’s senior brass, saying a delisting from London and a full shift to Germany was “better aligned” with the company’s ownership and could reduce “volatility in trading”.

She added that a German-only listing would free Tui from having to comply with “two separate regulatory regimes”, which she said created “inefficiencies as well as ongoing and recurring costs”.

Fellow shareholder advisor ISS also backed the plan, noting that 77 percent of Tui shares were held on its German registry last November. Only 10 per cent of its share trades were conducted in London last year.

Ready to go: Tui investors will vote on whether to approve a proposal to exit the Square Mile

Ready to go: Tui investors will vote on whether to approve a proposal to exit the Square Mile

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

Other splits in the pipeline include packaging group Smurfit Kappa and education company Pearson.

(tags for translation) Daily Mail

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