TUI wants to delist from the London Stock Exchange

The Anglo-German company TUI AG, Europe's largest travel operator, is considering delisting from the London Stock Exchange (LSE) as a way to simplify its business structure, skift.com reports, recalling that 77% of TUI shares are traded directly on the Frankfurt Stock Exchange.

Last week, TUI asked its shareholders to consider changing the way its shares are listed.

By keeping the listing on the Frankfurt Stock Exchange, the TUI company will be included in the MDAX, an index in which many funds invest.

Mathias Kiep, TUI's chief financial officer, said the advantages of the change in business structure include "improved liquidity, indexation and benefits for EU shareholders of operator-owned airlines".

TUI shareholders will take the decision regarding the change in the structure at the annual meeting scheduled for February 13. For its adoption, the approval of 75% of the shareholders is required. If they accept the change, TUI will withdraw from the London Stock Exchange around June 2024.

The evolution of the company's shares improved towards the end of last year, as the CEO of TUI, Sebastian Ebel, estimated a 25% increase in operating profit in 2024, respectively a 10% advance in sales.

In the first nine months of 2023, the company had a net loss of 505.5 million euros, half of the negative result for the same period in 2022. However, TUI returned to profitability in the third quarter: 52.5 million euros, with an increase of 383.5 million euros compared to the negative result of the previous year, according to seekingalpha.com.

For 2024, TUI anticipates that revenues have the potential to reach 2019 (pre-pandemic) levels of around euro19 billion, while margins should continue to improve.