British American Tobacco urged to ditch London listing for New York
Another blow to the city as British American Tobacco is urged to leave London’s list for New York
London suffered another blow when a major investor called for British American Tobacco (BAT) to leave the city for New York.
Asset manager GQG Partners, the fifth-largest shareholder, said it “makes no sense” for BAT to remain on the London Stock Exchange (LSE).
US-based £76bn founder Rajiv Jain urged the bosses of Lucky Strike and Pall Mall to delist from London after more than a century.
Withdrawal symptoms: Asset manager GQG Partners, the fifth largest shareholder, said it is ‘nonsensical’ for British American Tobacco to remain on the London Stock Exchange
Jain’s call raised new questions about the attractiveness of the LSE and follows a string of high-profile disapproval for the Square Mile.
British microchip designer Arm will float on Wall Street, raising hopes for a double listing. Japanese owner SoftBank is said to have been deterred by the city’s rules.
Fintech star Oaknorth warned it would float in New York rather than London and £30bn building materials giant CRH plans to move its shares to the US as companies seek better access to capital and higher valuations.
Jain said BAT is an “orphan in Europe” and emphasized the American focus of its activities. He told the Financial Times: ‘What’s the point of staying listed in London?’
Jain added, “We’re a big shareholder, so they listened to us and weren’t binding in any way.”