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Just Eat Takeaway is set to become the latest company to delist from the London Stock Exchange, saying the move will reduce costs and complexity.
The Netherlands-based online food delivery group, which has a primary listing in Amsterdam, announced on Wednesday that it intends to withdraw its secondary listing in London on December 27th.
The decision, which follows a review of optimal placement, is a further blow to the London market. The London market has lost companies this year, including travel group Tui, GE Aerospace and technology group Unisys, which decided to stop listing in the UK.
Building materials group CRH and gaming group Flutter have also moved their primary listings to the U.S. as companies look to shore up valuations.
Just Eat said the decision was taken to “reduce the administrative burden, complexity and costs associated with disclosure and regulatory requirements for maintaining LSE listings in the context of low liquidity and trading volumes for LSE shares. ”.
The company revealed earlier this month that it had sold Grubhub for $650 million, having acquired its U.S. business for billions of dollars at the height of the pandemic-induced food delivery boom, but it has not yet announced a secondary listing on the Financial Conduct Authority. He said he had requested the cancellation.
In a separate statement, the company said it was “considering efficiency improvements” as it executes its strategy to “accelerate growth” and that the majority of its trading volume takes place at its main listing venue, Euronext Amsterdam. Ta.
The group said its network now covers 97 per cent of the UK population and remains “committed to continuing to invest and strengthen our leadership position in this country”.
Just Eat announced in 2022 that it would be delisted from Nasdaq due to low trading volumes and the low proportion of American Depositary Receipts in total share capital, which would significantly reduce costs and reduce compliance requirements. I was hopeful.
The online food delivery group changed its London listing from “premium” to “standard” later that year.
According to the company, shareholder approval is not required for delisting from the LSE.
The company announced in 2021 that it would consider the best listing location for its long-term future, “taking into account the growing investor base and globalization that Just Eat Takeaway.com will have following the completion of the Grubhub acquisition.” did. the interests of the company and its shareholders; The company had previously planned to delist its shares from Euronext Amsterdam.
