Shares of Delta Corp Ltd soared nearly 10 per cent in Wednesday’s trade after the diversified company board announced plans to demerge its hospitality and real estate business in a bid to make it easier for the management to focus on its core business gaming.
“The Board of Directors of the company has considered and approved the draft composite scheme of arrangement between the company and Delta Penland Private Ltd (DPPL) — a newly incorporated company,” Delta Corp’s stock exchange filing read.
It added: The Scheme provides for the demerger of the company’s hospitality and real estate business to DPPL.
Additionally, DPPL is in the process of converting from a private limited company to a public company and necessary approvals in this regard are awaited, the company said.
“Upon the Scheme becoming effective, all shareholders of the Company are and will be the ultimate beneficial owners of the Resulting Company in the same ratio (inter se) as they hold shares in the Company. The shares of the Resulting Company shall be listed on the stock exchanges pursuant to the Scheme. The Scheme will have no impact on employees, customers and our business partners,” Delta Corp said.
As per the filing, the turnover of Delta Corp hospitality and real estate business as of March 31, 2024, stood at Rs 4.58 crore, which is 0.7205 per cent of the total turnover of Delta Corp.
The casino player’s hospitality and real estate business includes Deltin Suites, a 106-room, all-suite hotel with a casino located in Goa; The Deltin, a 176-room five-star deluxe property and the largest integrated resort, Daman; Marvel Resorts, a proposed 440-room hotel in Goa; and land situated in Dhargalim, Goa, where it is proposed to develop an integrated resort with a water park spread over 88 acres.
As far as The Deltin, Daman, the board has proposed to execute a contract between the DPPL and Delta Corp for its management and the property would continue to be owned by Delta Corp.
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