TUI Group Evaluates Potential Shift from London to Frankfurt Stock Exchange

TUI Group, a prominent travel and tourism company, is actively considering the feasibility of delisting from the London Stock Exchange in favor of a sole listing on the Frankfurt Stock Exchange. This strategic contemplation aligns with the fact that a majority of its stock is already traded in Germany and may align better with shareholder interests.

According to the company’s annual report, TUI Group has been prompted by certain shareholders to reevaluate its current listing structure. The potential shift aims to centralize liquidity and provide a more streamlined investment profile under a single listing. Other anticipated benefits include alignment with European Union airline ownership and control requirements, an enhanced equity profile through a possible prominent position in the MDAX50 index, and overall cost reductions and efficiencies.

Although no definitive decision has been made, the possibility of a UK delisting might be presented at the company’s annual general meeting scheduled for February 13, 2024. Mathias Kiep, TUI Group’s Chief Financial Officer, noted during an investor call that approximately 75% of the company’s stock is traded and held in Germany. This observation has led to questions about the necessity of maintaining a dual listing structure, especially in the context of recent shifts in the company’s ownership structure and the UK’s departure from the EU.

The EU domicile of TUI Group’s affiliate airlines, including TUI fly (Germany), TUI fly (Netherlands), TUI fly (Belgium), TUI fly Nordic, and the wholly-owned TUI Airways, is a crucial factor in this consideration. Maintaining EU-based ownership and control is essential for the operational compliance of these airlines.

This potential move by TUI Group reflects a strategic response to changing market dynamics and regulatory environments, emphasizing the importance of aligning corporate structures with shareholder interests and operational efficiencies.