Just Eat set to abandon London listing
Just Eat Takeaway has announced it will be delisting from the London Stock Exchange due to the administrative burden of a dual listing.
When Just Eat Takeaway.com was created in 2020 between a merger of the London-based Just Eat and the Amsterdam-listed Takeaway.com, it had initially planned to to scrap its Dutch listing.
However, in 2022, it scrapped its listing in the US and stuck to its dual listing in London and Amsterdam.
Now, the group is set to scrap its London listing as well.
“The company has recommenced and continued its review to determine optimal listing venues,” Just Eat told investors this morning.
“As part of this review, the company has considered, amongst other things, the liquidity and trading volumes, as well as cost and administrative requirements related to its primary listing in Amsterdam and secondary listing in London.”
The company cited the high costs, administrative burden, and complexity of the disclosure and regulatory requirements required to maintain a London listing. It also highlighted the low liquidity and trading volumes of its shares.
After the merger, Just Eat was removed from the FTSE 100 in 2021, as it was determined that it was no longer based in the UK.
The move from the company will be seen as a blow to the UK government and Financial Conduct Authority, which have worked to make the listing regime more attractive to companies to revitalise the stock exchange.
Just Eat’s stock price has suffered significantly since the merger. It plummeted during 2021 and 2022 and never fully recovered. It is down 84 per cent since February 2020.
The delisting will become effective from 27 December, with the last day of trading on 24 December.
“As the company is assigned to the equity shares international commercial companies secondary listing category of the official list of the FCA, no shareholder approval is required for the LSE delisting,” it added.
“As we deliver our strategy to accelerate growth, we have been looking at enhancing efficiencies and made the decision to delist from our secondary listing venue on the London Stock Exchange,” a spokesperson for Just Eat told CityAM.
“The majority of our trading volumes happen at our primary listing venue on the Euronext Amsterdam.”
“The UK continues to be a key market for us, home to many of our talented colleagues and our ever-expanding range of grocery and restaurant partnerships. With our network now covering 97 per cent of the UK population, we remain committed to continuing our investment and cementing our leadership position in the country.”