(New: Details)

FRANKFURT AM MAIN (dpa-AFX) - The world's largest travel group Tui is once again a German company on the stock exchange. This Monday, the share, whose main listing was in London for almost ten years, returns to Frankfurt. "Frankfurt is our stock exchange again as of today," said Group CEO Sebastian Ebel. This is a milestone for the Hanover-based company. Ebel rang the Borsen bell in Frankfurt this morning together with CFO Mathias Kiep. The initial share price was 7.73 euros. The share will also be listed in London until June, when trading there will be discontinued.

The change in Borsen's listing is intended to pave the way for the travel group to join the MDax, the German index for medium-sized companies. "We remain confident and expect to be included in the MDax on June 24," said a Group spokeswoman. The Group expects to save costs by concentrating on Frankfurt, and hopes that inclusion in the MDax will increase demand for its shares and thus boost the share price.

"With today's move, we are simplifying structures, consolidating liquidity in one trading center and thus strengthening Tui and its global brand presence," said CFO Kiep.

Borsen move helps with EU flight rights

The move should also help the Group to secure the conditions for air traffic rights in the EU in the future. This is because the EU requires that an airline such as Tuifly, which flies within the EU, must be majority-owned and controlled by owners from the EU. This would be easier to ensure with a head office in Frankfurt, it was said.

CEO Ebel explained at the Annual General Meeting in February that there have been no problems here so far, even after the UK's exit from the EU. "We have enough European shareholders today, even without the United Kingdom." This will be reinforced by the withdrawal from London, where more international investors traditionally buy. On the other hand, he does not expect difficulties for the British Tui Airways. "We don't have that problem there. The British are much more generous than the EU."

Merger with British subsidiary brought shares to London

The Tui Group had moved the main listing of its shares to London in 2014 as part of the merger with its former subsidiary Tui Travel. As a result, the Group was also removed from the MDax, to which it had previously belonged. However, the share did not disappear completely from Germany. It continued to be traded in Hanover and also in Frankfurt, but only as a secondary listing in the largely unregulated OTC market. It is now returning to the regulated Prime Standard, which is a prerequisite for inclusion in the MDax.

Several investors had suggested a change of listing. CFO Kiep justified the end of 2023 with the fact that, unlike a few years ago, three quarters of Tui shares are now owned and traded in Germany. Only 22 percent of share trading took place in London in 2023.

The stake of Russian major shareholder Alexei Mordashov, who once held more than 30 percent of Tui, has fallen to just under 11 percent following a capital increase last year. According to Tui, Mordashov cannot receive any income from his investment due to the current Russia sanctions and cannot vote at general meetings. At the Annual General Meeting in February, the shareholders gave the green light for his return to Frankfurt./fjo/DP/ngu