Delta Corp to Spin Off Hospitality and Real Estate Business
Delta Corp's board has approved the demerger of its hospitality and real estate business to Delta Penland Private Ltd, sending its share price up 8%.
Delta CorpHospitalityReal EstateDemergerShare PriceReal Estate NewsSep 25, 2024
The buying in the stock came after the company's board approved the draft composite scheme of arrangement between the company and Delta Penland Private Ltd (DPPL), a newly incorporated company. The Scheme provides for the demerger of the company's hospitality and real estate business to DPPL.
At around 9 22 AM, shares of Delta Corp were up 7.66% at Rs 139.15 per share on the BSE. By comparison, the BSE Sensex traded 0.08% lower at 84,843.12 around the same time.
The demerger is expected to have no impact on employees, customers, and business partners. Upon the Scheme becoming effective, all shareholders of the Company will be the ultimate beneficial owners of the Resulting Company in the same ratio 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 turnover of Delta Corp's hospitality and real estate business as of March 31, 2024, stood at Rs 4.58 crore, which is 0.7205% of the total turnover of Delta Corp. The 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.
There will be no change in the shareholding pattern of Delta Corp, but in case of DPPL, while the promoters will hold 1 million shares (33.26%), 17,87,20,657 shares will be kept as public shareholding (66.74%).
In the past one year, shares of Delta Corp have lost 9.6% against BSE Sensex's rise of 28.6%.
About Delta Corp
Delta Corp is one of India's leading gaming and hospitality companies, with a presence in Goa and Daman.
The demerger is part of Delta Corp's strategy to focus on its core gaming business and unlock value for its shareholders.
Delta Corp is a leading gaming and hospitality company in India, with a presence in Goa and Daman. The company operates several casinos and hotels, including Deltin Suites and The Deltin, and is listed on the BSE.
Frequently Asked Questions
What is the reason behind Delta Corp's demerger of its hospitality and real estate business?
The demerger is part of Delta Corp's strategy to focus on its core gaming business and unlock value for its shareholders.
What is the impact of the demerger on employees, customers, and business partners?
The demerger is expected to have no impact on employees, customers, and business partners.
What is the shareholding pattern of Delta Corp and DPPL after the demerger?
There will be no change in the shareholding pattern of Delta Corp, but in case of DPPL, while the promoters will hold 1 million shares (33.26%), 17,87,20,657 shares will be kept as public shareholding (66.74%).
What is the performance of Delta Corp's shares in the past one year?
In the past one year, shares of Delta Corp have lost 9.6% against BSE Sensex's rise of 28.6%.
What are the businesses that will be demerged from Delta Corp?
The businesses that will be demerged from Delta Corp include Deltin Suites, The Deltin, Marvel Resorts, and land situated in Dhargalim, Goa.
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