The board of travel group TUI AG (LSE:TUI) has recommended that the company cancel its UK listing, dealing a fresh blow to the London stock market.
Tui is listed in both London and Frankfurt but said last month that shareholders had questioned whether the structure was “optimal and advantageous”.
In a statement on Thursday, the tour operator said that liquidity in the shares had moved from London to Frankfurt in recent years.
“Around 77% of share transactions are conducted directly through the German share register and less than a quarter of trading in Tui shares is carried out in the form of UK depositary interests,” it said.
It noted that in recent years, in particular, the ownership structure of TUI shares and liquidity on the stock exchanges have changed significantly.
Mathias Kiep, CFO of TUI said: "Terminating the listing in London would offer clear advantages for investors and the company: Simplification of structures, improvement in liquidity and indexation as well as benefits for the EU ownership of our airlines."
The de-listing from the London Stock Exchange is expected to take place in June 2024.
Shareholders will be asked to vote on the proposal at the annual meeting next month.