Optum Health Focuses On Search
a href="http://www.optum.com.au">Optum Health Ltd ('OPM') advises that it has entered into an agreement with Wavtech Pty Ltd ('Wavtech'), its co-venture partner in Optum E.S. Pty. Ltd ('Optum ES'), in relation to the shares and shareholding in that company.
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% carried interest.
Under the terms of the new agreement the shareholding in Optum ES will be re-arranged such that Wavtech will hold an 85% equity and OPM a 15% carried interest.
As consideration for the re-structure, Wavtech will pay a cash payment to OPM of $800,000 (eight hundred thousand dollars). OPM will further 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.
OPM 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 duing the coming week.
The Company believes the restructure will provide considerable benefits to the Company and its shareholders and create an increased market appeal and awareness. OPM can now more singularly 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.
The Company will be able to actively pursue this direction while continuing to maintain a presence in the potentially lucrative water re-treatment industry through its retained equity in Optum ES and with the substantial up-side provided by a gross sales royalty.
About the author: Peter Jermyn is the Chairman of Optum Health Ltd.