Listed property trust Aspen Group Ltd has announced the sale of a non-core asset in online business directory company Aussie.com.au Pty Ltd to Subiaco-based Ansearch Ltd for $600,000 in shares and options.
Listed property trust Aspen Group Ltd has announced the sale of a non-core asset in online business directory company Aussie.com.au Pty Ltd to Subiaco-based Ansearch Ltd for $600,000 in shares and options.
Ansearch said it would use the acquisition to help build its search and directory business Phonebook.com.au
Aussie.com.au at its peak in the dot com boom was valued at around $180 million and has spent over $10 million developing the business.
Settlement on the transaction is slated for mid-February.
Further details can be read in statements from both Ansearch and Aspen below.
Ansearch Ltd (ANH) is pleased to advise that it has entered into a Heads of Agreement with listed property group, Aspen Group ("Aspen") in regards to the acquisition of online business directory company, Aussie.com.au (2000) Pty Ltd. ("Aussie.com.au")
Aussie.com.au is a wholly owned subsidiary of Aspen (previously named Aussie Online Limited) and was established to acquire the online directory business known as aussie.com.au
On the back of aussie.com.au, Aussie Online Limited was capitalized at its peak at around $180 million. Aussie.com.au spent in excess of $10 million developing its online business directory and established over 1.5 million business listings in a database that also includes some 200,000 email addresses.
Ansearch regards the intended acquisition highly and considers it an integral step in the Group's strategy to aggressively grow its Search and Directory business, Phonebook.com.au
The ownership of Aussie.com.au will assist Ansearch in its endeavours to position Phonebook.com.au as a highly influential force in the online directory and business listings market.
Ansearch CEO, Dean Jones said... "The opportunity is there and the timing is right for us to really accelerate the growth of Phonebook.
"Expansion of our audience and consequent increases in our revenues will occur through a combination of rapid internal growth, strategic alliances and select acquisitions. Aussie.com.au compliments our plans perfectly. The company's Intellectual Property and extensive database together with its well known and well established brand name has intrinsic value and appeal to
us. "It will significantly contribute to the further development of our search infrastructure, provide additional utility to our growing audience and expand our growing portfolio of search brands.
"We see huge new opportunities in this space for us both in Australia and globally. In the short term we believe Australia will start to mirror what is occurring in the US in this industry with substantial growth and market recognition being experienced. Online advertising, for example, has seen dynamic expansion in the US. We are now starting to see the early signs of that in
Australia. The online advertising dollars for the Australian market for the 6 month period from January to June '05 were $488 million, an increase of about 63% on the immediately prior 6 month period. Although we don't have the official figures as yet for the past 6 months there would be little doubt that those figures are up again."
The acquisition of Aussie.com.au (achieved by the purchase of all of the issued capital in Aussie.com.au from Aspen) is subject to the completion of a due diligence review to the Company's satisfaction and thence in turn, Ansearch shareholder approval at a forthcoming EGM. Completion of the due diligence review is set down for 31 January 2006.
Consideration to be paid following shareholder approval will be 5 million ordinary fully paid shares and 5 million unlisted options in Ansearch.
About Ansearch Ltd The Ansearch Group of Companies is focused on delivering technically advanced search and online media solutions that service the needs of users, advertisers and publishers globally.
Ansearch.com.au
Ansearch.com.au is a leading search engine which was launched in early December 2004 and since then it has quickly become one of Australia's leading search engines. By providing search results for only the most popular websites, Ansearch possesses a smaller data footprint than competing search engines. This enables Ansearch to focus on delivering the most relevant
results to a search query. For more information please visit http://www.ansearch.com.au
soush.com
The soush network delivers and distributes sponsored search, display and sponsorship-based advertising across websites, search engines & directories and e-newsletters. Soush provides a variety of solutions to help advertisers generate effective results. http://www.soush.com
Phonebook.com.au
Phonebook is a search directory for local businesses. Phonebook delivers location details, email addresses and often website addresses all at the touch of a button. Phonebook provides users with the flexibility to type in keywords, business names and locations, including street names to find what they're searching for. It is uncluttered, simple and easy to use.
http://www.phonebook.com.au
Aspen Group (ASX:APZ) wishes to advise it has agreed terms for the sale of Aussie.com.au (2000) Pty Ltd, a subsidiary of Aspen Group which operates an online business directory. The business which has a nil carrying value in the Aspen Group accounts, has been sold to ASX listed Ansearch Ltd (ASX:ANH). In consideration for the sale, APZ will receive 5,000,000 ordinary shares in ANH and 5,000,000 unlisted options (exercisable at four cents, expiry December 2008). Based on ANH's current trading price of eight cents, the share and option package is valued at $600,000.
The disposal of Aussie.com.au (2000) Pty Ltd is subject to a due diligence period and shareholder approval by ANH with settlement anticipated by mid February 2006.