The Anglo-Dutch food delivery giant, Just Eat Takeaway, has agreed to de-list itself from the London Stock Exchange. The move serves as an example of wider problems with the UK market in terms of its ability to attract high-growth technology firms. Based on a review of its listing strategy, the company declared that it won’t carry on trading on the LSE and would rather keep Amsterdam as its sole venue for trading.
The company cited “low liquidity and trading volumes” in London as a reason it would be leaving the LSE. Just Eat Takeaway cited a reason to streamline operations by reducing the administrative burden, complexity, and costs in maintaining its listing on the LSE. It is part of a larger effort to simplify regulatory and disclosure obligations that have become increasingly hard to justify in light of limited trading activity on the UK exchange.
The company has stated that it has requested the LSE and FCA to delist it as it will focus only on the listing in Amsterdam. The delisting becomes effective at 8 a.m.
London time on December 27, with December 24 being the final day its shares will be traded on the LSE. With that, the company shares will be tradable on the Euronext Amsterdam stock exchange only.
This is a setback for the UK’s ambition to be an attractive location for high-growth technology companies. Just Eat Takeaway’s departure from the London market marks a significant departure and will be further tested in terms of the appeal of the LSE to similar companies going forward.
Earlier this month, Just Eat Takeaway also announced it would sell its U.S.-based GrubHub division to the online startup Wonder for $650 million, a significant loss compared to the $7.3 billion it had paid for the business. The divestiture shows yet another step toward re-structuring the company to facilitate simplification of operations.
The shares of Just Eat Takeaway dropped by 1.5% after the declaration, with investors expressing concern over the change in strategy. It remains to be seen how that affects its long-term growth prospects or its position in the global food delivery market when the company focuses and consolidates business into Amsterdam.
