Baltimore Technologies prepares to delist

THE death knell for Baltimore Technologies as a listed company was sounded by its new management yesterday in a bid to streamline costs at the company.

The company said the cost of servicing its 40,000 small shareholders was a burden on its finances and could not continue and it plans to consolidate shares.

The company has no operating units and the new board says it is working on a plan to reinvent the company which was once worth €7.15 billion. It said that of the 40,000 shareholders some 24,000 owned less than 125 shares each. The value of 125 Baltimore shares is under €31.5.

It said the cost of maintaining a listing on the London stock market and sending out reports to shareholders was too much for a company of its size and a more appropriate share structure was required.

If a shareholder with 125 or more ordinary shares at the time of the proposed consolidation, planned for next February, will see these consolidated into one new ordinary share in Baltimore. Holders of less than 125 existing ordinary shares in the company will not receive any new ordinary shares in Baltimore but will receive cash from the sale of their shares.

The company said it will hold an extraordinary general meeting to vote on delisting. “The proposed consolidation resulting in the elimination of a number of small shareholders is expected to result in a significant reduction of the annual administrative costs which the Company incurs in servicing those shareholders.”

It added: “The board is currently exploring whether a matched bargain facility can be put in place to facilitate shareholders’ dealings in ordinary shares in the company following the cancellation of the company’s listing.”

The new management team were installed after Acquisitor Holdings, the investment vehicle that owns 26% of Baltimore, ousted the previous board.

It said that it is working on a new plan of the company, whose only asset is €31.5 (£22) million in cash, but gave no indication of what it plans to do.