Delta Corp Approves Demerger, Creating New Hospitality and Real Estate Entity
Delta Corp has announced the demerger of its hospitality and real estate divisions, resulting in the formation of a new entity, Delta Penland Private Limited (DPPL). This strategic move aims to streamline operations and unlock shareholder value.
Delta CorpDemergerHospitalityReal EstateDpplReal EstateOct 14, 2024
The demerger is designed to streamline Delta Corp’s business focus, allowing the newly created DPPL to specialize in hospitality and real estate, while the parent company, Delta Corp, can concentrate more on its gaming ventures. The company has emphasized that the decision will unlock value for shareholders and create better opportunities for both sectors.
DPPL will be a wholly owned subsidiary of Delta Corp following the demerger and is in the process of transitioning from a private company to a public one, pending regulatory approvals. The process will be carried out through a Composite Scheme of Arrangement under Sections 230-232 and Section 66 of the Companies Act, 2013. The demerger is subject to approval from shareholders, stock exchanges, the Securities and Exchange Board of India (SEBI), the National Company Law Tribunal (NCLT), and other regulatory authorities. Delta Corp estimates that the entire process will take around 10-12 months to complete.
For existing shareholders of Delta Corp, the demerger offers a tangible benefit. Upon the scheme's approval, shareholders will receive one share of DPPL for every share they hold in Delta Corp. This ensures that they remain proportionate beneficiaries of both companies. Moreover, DPPL will be listed on stock exchanges, enabling shareholders to invest in both Delta Corp and DPPL independently. According to the company, the demerger will have no negative impact on employees, customers, or business partners.
The creation of DPPL comes at a time when both the hospitality and real estate sectors are experiencing significant growth in India. By forming a dedicated entity for these segments, Delta Corp is positioning itself to better capitalize on future opportunities. As a stand-alone company, DPPL is expected to leverage its resources and expertise to further expand Delta Corp's presence in these high-potential industries.
This move highlights Delta Corp's commitment to long-term growth and its ability to adapt to market trends while maintaining value for its investors.
Frequently Asked Questions
What is Delta Corp’s main business focus after the demerger?
After the demerger, Delta Corp will primarily focus on its gaming ventures, including casino and online gaming, while the new entity, Delta Penland Private Limited (DPPL), will specialize in hospitality and real estate.
How will the demerger benefit existing shareholders of Delta Corp?
Existing shareholders of Delta Corp will receive one share of DPPL for every share they hold in Delta Corp, ensuring they remain proportionate beneficiaries of both companies. This provides them with the opportunity to invest in both Delta Corp and DPPL independently.
What regulatory approvals are required for the demerger to be completed?
The demerger requires approval from shareholders, stock exchanges, the Securities and Exchange Board of India (SEBI), the National Company Law Tribunal (NCLT), and other regulatory authorities.
How long is the estimated timeline for the demerger to be completed?
Delta Corp estimates that the entire demerger process will take around 10-12 months to complete.
Will the demerger have any negative impact on employees, customers, or business partners?
According to the company, the demerger will have no negative impact on employees, customers, or business partners.
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