(Alliance News) - Tui AG shares were back trading on the prime standard segment of the Frankfurt Stock Exchange on Monday, as the holiday operator expects inclusion in MDAX index of German mid-cap stocks, amid its planned exit from the London Stock Exchange.
The Hannover, Germany-based company operates Hotels & Resorts, Cruises, and Markets & Airlines divisions.
Tui expects inclusion on the MDAX on June 24, the same day it is set to leave the London Stock Exchange, where it currently is a constituent of the FTSE 250 index.
In February, shareholders voted to delist from London, while upgrading to a prime standard listing in Frankfurt with inclusion on the MDAX. The prime standard is a listing segment that includes companies fulfilling "high" international transparency requirements, according to Frankfurt Stock Exchange operator Deutsche Boerse AG.
"With today's step, we are simplifying structures, consolidating liquidity in one trading venue and thus strengthening Tui and its global brand presence," explained Tui Chief Financial Officer Mathias Kiep.
"We want to continue to grow successfully, and Tui should remain an attractive long-term investment for current and new shareholders."
Hargreaves Lansdown analyst Sophie Lund-Yates recently commented: "The added complexity and cost of maintaining dual listings since Brexit has seen others decide to go down a similar route. While it does little to change the business case, the optics for London are less than ideal."
Tui shares were 3.5% higher at 675.50 pence each on Monday morning in London and were up 2.9% to EUR7.85 each in Frankfurt.
By Tom Budszus, Alliance News slot editor
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TUI AG (TUI)