Just Eat to cease trading in London after less than five years of red tape and costs

Just Eat Takeaway.com will delist from the London Stock Exchange as the Dutch food delivery app looks to reduce costs and complexity.

The value of the group’s London-listed shares has plunged almost 85 per cent since their debut in February 2020 to £77.40 each, as waning post-Covid demand and aggressive expansion efforts have eroded their results.

Just Eat told investors this morning that it would exit London at the end of this year “to reduce the administrative burden, complexity and costs associated with the disclosure and regulatory requirements to maintain” the listing.

The group, which will not seek shareholder approval for the move, also highlighted the “low liquidity and trading volumes” of its London-listed shares.

Just eat stocks It will continue to be traded on the Euronext stock exchange in Amsterdam.

The group becomes the latest household name to leave the London Stock Exchange, following the likes of TUI and Paddy Power owner Flutter, as boards and investors grow impatient with poor price returns. of the actions.

Just Eat has been particularly affected by weak demand in the United States.

Last month, Just Eat sold US unit Grubhub for $650 million, a dramatic discount from the $7.3 billion it paid for the troubled US food delivery business just three years ago.

Just Eat said on Wednesday: “The company hereby advises that, to reduce the administrative burden, complexity and costs associated with the disclosure and regulatory requirements to maintain listing on the LSE, and in the context of low liquidity and trading volumes of the shares on the LSE, has requested that the FCA cancel the listing.

What does it mean for shareholders?

Just Eat shares take the form of CREST Depository Interests (CDI) when trading in London.

CREST is an electronic system for holding investments and settling transactions in UK and Irish shares, and a CDI is a UK investment that represents an investment in a stock exchange outside the UK.

Just Eat said shareholders who own CDI “should consult their own investment advisors and brokers about what actions they can take.”

This includes the steps to convert your CDI holdings into share holdings that can be traded directly on Euronext Amsterdam.