Just Eat Takeaway to Delist from London Stock Exchange Amid Cost-Cutting Measures
Just Eat Takeaway, Europe's largest meal delivery service, has announced its decision to delist from the London Stock Exchange (LSE) as part of a cost-cutting strategy that reflects ongoing challenges within the UK financial landscape. The company's delisting follows a comprehensive review of its stock listing strategies, as stated in their latest press release.
The decision comes on the heels of significant operational challenges that Just Eat has been facing, stemming from the decline of pandemic-driven online food orders and increased competition within the delivery sector. Just Eat's shares will continue to be traded on the Amsterdam stock market, where the firm is headquartered, as it seeks to streamline its operational costs and reduce the complexities associated with maintaining a listing in London.
According to Just Eat, factors influencing their choice to exit the LSE include the financial burden and regulatory requirements tied to the listing, low liquidity, and trading volumes affecting share performance. These changes reflect a broader trend impacting UK-listed companies, particularly as more firms are reconsidering their presence on the LSE.
The announcement comes only weeks after Just Eat revealed it would be selling its U.S. subsidiary, Grubhub, at a significant loss—four years post-acquisition in a multibillion-dollar deal following initial pandemic lockdowns. This decision underscores the difficulties the company is navigating in the evolving food delivery market.
Just Eat has given the necessary 20 business days notice ahead of its official delisting date, which is scheduled for December 27. This timing means the last day for trading Just Eat shares in London will be December 24, right before the festive stock market closure.
Following the delisting, stakeholders will only be able to trade shares on Euronext Amsterdam. The company has assured London investors that the delisting will not adversely impact shareholders who hold shares in Amsterdam. However, those holding shares in London are encouraged to seek advice from investment professionals on how to transition their holdings to the Amsterdam exchange.
This is not Just Eat's first departure from a major exchange; the company also delisted from the U.S.-based Nasdaq in 2022, a move made for similar reasons concerning costs and compliance burdens.
The trend of delistings from the LSE paints a troubling picture for the UK’s international financial standing. Recent surveys indicate widespread skepticism among FTSE 350 companies regarding the recovery of the LSE. More than half of business leaders polled expect to see continued net delistings over the next five years, a trend that poses significant implications for the future of the UK’s financial markets.
Just Eat's exit from London marks yet another setback for the UK stock market, occurring shortly after Klarna, the Swedish fintech company, opted for a U.S. flotation rather than pursuing a listing in Britain. This pattern raises questions about how competitive the LSE will remain and the broader ramifications for UK-based businesses seeking to raise capital in the international arena.
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