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NT Bureau
Chennai, Feb 9:

        California Software Company Limited (Calsoft) would reduce its equity stake in American HealthNet Inc (AHN) of Omaha, US, to 18.5 per cent.

        Calsoft's wholly owned subsidiary CSWL Inc has sold about 34 per cent of equity stake in AHN to another investor Andorra Services Ltd (ASL), an angel investment and venture capital company. The sale has yielded CSWL Inc a gain of $300,000 in a cash deal.

        With this divestment, Calsoft group's stake in American HealthNet Inc (AHN) was reduced to below 20 per cent and with this transaction, the American HealthNet Inc (AHN) would no longer form part of the consolidated results of Calsoft group with effect from the ongoing fourth quarter of fiscal 2006-07. The company had acquired a majority stake of 51 per cent in AHN in February 2005 through its wholly owned US subsidiary CSWL Inc.

        According to S Santhosh, managing director and CEO, Calsoft, 'we still believe in the long term prospects of American HealthNet. However, as a product company AHN needs more time and continued financial support.'