The food delivery company Just Eat Takeaway is to delist from the London Stock Exchange to cut costs, in a further blow to the UK’s international financial standing.
Just Eat is also listed on the Amsterdam stock market, where the company is headquartered, and said the delisting resulted from restarting a review into where its shares should be listed.
Citing the “administrative burden, complexity and costs associated with the disclosure and regulatory requirements of maintaining the LSE listing” as its reasons for the decision, Just Eat said it was also because of low liquidity and trading volumes of its shares on the London market.
Europe’s largest meal delivery company has been grappling with the end to the pandemic-fuelled boost to online food orders and tough competition from other delivery services.
The decision to delist comes just weeks after Just Eat announced it was selling its US arm Grubhub at a considerable loss, only four years after buying the US app in a multibillion-dollar tie-up after the first Covid lockdowns.
Giving the required 20 business days’ notice of its delisting, Wednesday’s announcement means the company’s shares will trade for the last day in London just before Christmas, on 24 December. Given the festive stock market closure over the following two days, the delisting will take effect from 8am on 27 December.
After that date it will only be possible for investors to trade the company’s shares on Euronext Amsterdam, and Just Eat said it did not expect the London delisting to have an effect on its shareholders who hold their shares in Amsterdam.
Just Eat advised its investors who hold the company’s shares in London to consult their own investment advisers and brokers on what to do about their shareholding, including how they could convert their holdings into shares that can be traded in Amsterdam.
Just Eat delisted from the US tech-focused Nasdaq exchange in 2022, when it also blamed the “complexity and costs” associated with maintaining the listing.
At the time, the company used very similar wording to Wednesday’s announcement to describe its reasons for getting rid of its third stock market listing. It said the decision to delist from the Nasdaq would lead to “substantial cost saving” and a reduction in compliance requirements.
Just Eat’s decision to leave London marks yet another disappointment for the UK’s blue-chip index, coming weeks after the buy now, pay later company Klarna filed for its much-anticipated flotation in the US instead of Britain.
It comes after a recent survey of FTSE 350 companies found that British boards are sceptical about the recovery of the LSE.
More than half (53%) of business leaders surveyed told the report published by the Chartered Governance Institute UK & Ireland that they expected the City to continue to experience net delistings over the next five years.
