Nov 28, 2024, 12:00 AM
Nov 27, 2024, 12:00 AM

Just Eat announces delisting from London Stock Exchange amid financial struggles

Highlights
  • Just Eat Takeaway.com is delisting from the London Stock Exchange due to high costs and complex regulatory demands.
  • The company's share value has plummeted nearly 85% since its 2020 debut, largely due to decreased demand and costly expansions.
  • This move highlights a trend of companies leaving the London market in search of better trading conditions and returns.
Story

Just Eat Takeaway.com, a Dutch food delivery service, has announced its decision to delist from the London Stock Exchange due to several financial pressures and challenges. The company stated that this move is designed to reduce the administrative burden and the complexity and costs affiliated with maintaining its listing in London. Notably, Just Eat's shares have experienced a dramatic decline, dropping nearly 85% since they debuted at £77.40 in February 2020. This fall is attributed to decreased post-Covid demand and aggressive expansion efforts that have impacted profitability. Furthermore, Just Eat is becoming the latest in a series of well-known companies to exit the London Stock Exchange, signaling a growing trend among firms seeking better financial returns elsewhere. Other notable companies, including TUI and Flutter, have also chosen to leave amid dissatisfaction with their stock performance. This trend reflects increasing frustrations from boards and investors over low liquidity and trading volumes within the London market. In relation to its overall operations, Just Eat has particularly struggled in the US market, which has prompted the sale of its US division, Grubhub, for a mere $650 million. This sale marks a significant loss considering the company had previously acquired Grubhub for $7.3 billion just three years earlier. The substantial discount highlights the difficulties Just Eat has faced as it attempts to navigate a competitive landscape that has become more challenging post-pandemic. The company has informed shareholders holding CREST Depository Interests (CDIs) that they should seek advice from their investment advisers regarding the next steps. This guidance is important as it left investors needing information on how to convert their CDIs into shares that they could trade directly on the Euronext exchange in Amsterdam. As Just Eat transitions away from the London Stock Exchange, it illustrates the shifting dynamics of the food delivery industry, as major players adjust strategies in response to evolving market conditions.

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