Another blow for the City as British American Tobacco is asked to drop London listing for New York
London suffered another blow when a major investor asked British American Tobacco (BAT) to abandon the City for New York.
Asset manager GQG Partners, the fifth largest shareholder, said it “didn’t make sense” for BAT to remain on the London Stock Exchange (LSE).
The founder of the £76billion US fund, Rajiv Jain, has urged bosses at manufacturer Lucky Strike and Pall Mall to drop its London listing after more than a century.
Withdrawal symptoms: Asset manager GQG Partners, the fifth largest shareholder, said it ‘didn’t make sense’ for British American Tobacco to remain on the London Stock Exchange
Jain’s appeal has raised new questions about the attractiveness of the LSE and follows a series of high-profile rebuffs for the Square Mile.
British microchip designer Arm is set to float on Wall Street, dashing hopes of a dual listing. Its Japanese owner SoftBank was reportedly discouraged by city rules.
Fintech star Oaknorth has warned it will float in New York instead of London and £30bn building materials giant CRH plans to transfer its shares to the US as companies are looking for better access to capital and higher valuations.
Jain said BAT was an “orphan in Europe” and pointed to the focus of its business on the United States. He told the Financial Times: ‘What’s the point of staying listed in London?
Jain added, “We’re a big shareholder so they listened to us and they didn’t engage one way or the other.”