Just Eat is being delisted in London after less than five years due to red tape and costs
Just Eat Takeaway.com will delist from the London Stock Exchange as the Dutch food delivery app aims to cut costs and complexity.
The value of the group’s London-listed shares has fallen by almost 85 per cent to £77.40 each since their debut in February 2020, as declining post-Covid demand and aggressive expansion efforts have eaten away at the company’s bottom line.
Just Eat told investors this morning that it would leave London at the end of this year “to reduce the administrative burden, complexity and costs associated with the disclosure and regulatory requirements of maintaining” its listing.
The group, which will not seek shareholder approval for the move, also highlighted the “low liquidity and trading volumes” of its London-listed shares.
Just eat stocks will continue to be traded on the Amsterdam Euronext stock exchange.
The group becomes the latest household name to leave the London Stock Exchange, following TUI and Paddy Power owner Flutter, as boards and investors have grown impatient with poor share price returns.
On the bike: Just Eat leaves London to focus on the Dutch listing
Just Eat has been particularly affected by weak demand in the US.
Last month, Just Eat sold US-based Grubhub for $650 million – an impressive discount to the $7.3 billion it paid for the struggling US food delivery company three years ago.
Just Eat said on Wednesday: ‘The company hereby announces that, in order to reduce the administrative burden, complexity and costs associated with the disclosure and regulatory requirements of maintaining the LSE listing, and in the context of the low liquidity and trading volumes of the shares on the LSE, it has asked the FCA to cancel the listing.’
What does it mean for shareholders?
Just Eat shares take the form of CREST Depository Interests (CDIs) when trading in London.
CREST is an electronic investment holding and settlement system for UK and Irish shares, and a CDI is a UK investment representing an investment on a non-UK stock exchange.
Just Eat said shareholders holding CDIs are ‘urged to consult their own investment advisers and brokers about the actions that can be taken’.
This includes the steps to convert their holdings of CDIs into shares that can be traded directly on Euronext Amsterdam.
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