Efforts to stop Tui from leaving the London stock exchange next week have been dealt a blow after two shareholder advisory groups backed its decision to exit.
Investors in the tour operator will vote at their annual meeting on Tuesday whether to approve a motion to exit the Square Mile, leaving it with an exclusive listing on the Frankfurt Stock Exchange.
Advisory group Pirc, which has a history of clashing with boards, supported Tui’s top brass, saying delisting from London and moving entirely to Germany “better aligns” with the company’s ownership and could reduce “volatility in trade.”
It added that an exclusive listing in Germany would free Tui from having to adhere to “two separate regulatory regimes”, which it said created “inefficiencies as well as ongoing and recurring costs”.
Shareholder advisor ISS also backed the plan, noting that 77 percent of Tui’s shares were in its German registry last November. Only 10 percent of its stock transactions took place in London last year.
Ready for takeoff: Tui investors will vote on whether to approve a motion to exit the Square Mile
Tui’s impending defection will increase pressure on London stock market regulators and government officials. Last month, gaming giant Flutter began trading in New York and announced plans to move its “main” listing across the Atlantic.
Other defections in the pipeline include packaging group Smurfit Kappa and education company Pearson.