Ansearch owner sheds legacy business for $800K

Stan Beer
Monday, 12 September 2005 16:45

IT Industry - Listed Tech

Owner of the Ansearch search engine business, Optum Health Ltd ASX:OPM), has shed most of its legacy water treatment holdings for $800,000 cash and a share of future royalties.

Optum has entered into an agreement with Wavtech Pty Ltd, its co-venture partner in Optum E.S. Pty. Ltd. Optum ES is the operating company for the co-venture and holds the Australasian rights to the US based TerraSan and MariSan water treatment and recycling technologies. Under the current shareholding structure OPM holds an 80% equity in Optum ES and Wavtech a 20% interest.

Under the terms of the new agreement the shareholding in Optum ES will be re-arranged so that Wavtech will hold an 85% equity and Optum a 15% interest.

To gain its controlling interest in water treatment business, Wavtech will pay a cash payment to Optum of $800,000. Optum will also receive a gross sales royalty of 3% on all TerraSan and MariSan systems sold or leased by Optum ES from the date of the Agreement until 30 June 2008.

According to Optum, the company has decided on the new shareholding structure and royalty arrangement so as to give more specific project direction to and financial focus on its rapidly growing search-engine and online media divisions. The Company intends to announce a more detailed update on the current activities, progress and growth projections of Ansearch during the coming week.

Optum believes the restructure will provide considerable benefits to the company and its shareholders and create an increased market appeal and awareness. Optum intends to direct its financial, corporate and marketing energies to the business expansion and revenue growth of Ansearch, its associated search-engine brands and products and to its related online media interests.