DAX loses heavyweight
Linde says goodbye to the Frankfurt Stock Exchange
01/18/2023, 6:25 p.m
It is a loss for the leading German index DAX, but it makes business easier for the industrial gas group: After a positive vote by the shareholders, Linde withdraws from the Frankfurt Stock Exchange and will only list its shares in New York in the future.
Linde shareholders have cleared the way for the industrial gases group to withdraw from the Frankfurt Stock Exchange. At the extraordinary general meeting at the Group’s operational headquarters in Danbury, Connecticut, the shareholders voted in favor of the merger into a new umbrella company that will only be listed on the New York Stock Exchange. The new holding company will be called Linde and will trade under the existing ticker symbol (LIN).
According to the preliminary voting results, at least 93 percent of the votes cast were in favor of the motion. The total number of votes cast corresponded to approximately 78 percent of the total outstanding shares of Linde plc.
Upon completion of the approvals, Linde expects to complete the reorganization and delisting of Linde common stock from the Frankfurt Stock Exchange on or about March 1, 2023.
A majority of 75 percent was required for a decision
The planned withdrawal caused some criticism in advance because the leading index DAX loses an important value. The large German fund companies, including Union Investment and Deka Investment, had announced opposition to the plans for the general meeting.
With the withdrawal of Linde, Deutsche Börse loses by far its largest DAX value. The project triggered a debate about the competitiveness of the German financial center in an international comparison.
At the time, Linde justified the project by saying that the double listing of the share in the United States and in Germany was disadvantageous. CEO Sanjiv Lamba said this has impacted stock valuation due to European restrictions and increasing complexity. The step is not intended to have any impact on the Linde organization, employees, customers or the Group’s commitment in the regions, including Germany.