Baltimore backers to get average dividend of €300

Baltimore Technology's 5,143 Irish shareholders are likely to share an average of just over £200 (€300) each as a result of the company's decision to distribute its cash to stakeholders.

Baltimore yesterday announced that it had ditched plans to use its remaining cash to invest in the alternative energy market and will instead distribute the money to its shareholders by way of a special dividend.

At the end of last year, the company had approximately £24 million in cash on its balance sheet. It subsequently added another £4 million through disposals, including the sale of Baltimore Technologies Japan, bringing this to a total of £28 million.

The company said yesterday that it was committed to distributing as much of this money as possible to shareholders, while maintaining its listing on the London Stock Exchange. Baltimore has a total of 53.755 million issued shares.

A distribution of £28 million would work out at just over 52p a share.

According to its register, the average Irish shareholder has 385 shares in the company. At that rate, they would be entitled to £200.20. Baltimore has 5,143 shareholders in the Republic, who hold mainly small stakes in the company.

In 2000, Baltimore Technologies became part of London's FTSE Top 100 index when its price hit £14.80 in February of that year. At that price, 385 shares would have cost £5,968.

Its price began to fall dramatically soon after that point when the technology bubble burst. Since then, Irish founder and chief executive, Mr Fran Rooney, left the company and was succeeded at the helm by Mr Bijan Khezri.

Under his charge, the company gradually exited from its internet security businesses last year, and now has little or no presence in the Republic, which once housed its headquarters.

At the end of March, Baltimore announced that it intended using its cash to invest in the alternative energy sector and appointed new chief executive Mr David Weaver to lead this. However, its biggest shareholder, Bermuda-based Acquisitor Holdings, opposed this move.

Acquisitor then held 16 per cent of Baltimore. Its backers last month failed in their bid to sack the Baltimore board at an extraordinary general meeting (e.g.m.) in London early last month. By yesterday, Acquisitor had increased its stake to 21.05 per cent.

In a statement, Baltimore said that it could not implement its alternative energy strategy while its biggest shareholder opposed the move, and that Acquisitor was seeking a second e.g.m. in order to table a new motion to sack the board.

Its new plan will be put to a shareholder vote at its annual general meeting, which has now been scheduled for July to coincide with the second e.g.m. Baltimore will also reduce its board - Mr Weaver and his colleagues, Mr Richard Eyre and Mr James Huston, will all step down.

A spokeswoman for Acquisitor last night said that the company would review the new proposals before making any comment.