Delta Corp's Strategic Restructuring: Unleashing Growth through Demerger
Delta Corp shares surge over 8% on announcement of demerger of hospitality and real estate businesses, aimed at unlocking value and driving growth
Delta CorpDemergerHospitalityReal EstateStock MarketReal Estate NewsSep 25, 2024
Strategic Restructuring for Growth
Delta Corp, which operates in Casino Gaming, Online Gaming, Hospitality, and Real Estate, sees the move as a strategic step to unlock value and create growth opportunities for both sectors. The demerger is expected to enhance focus on these segments, driving better operational efficiency.
Formation of Delta Penland Private Limited
Post-demerger, DPPL will be a wholly owned subsidiary of Delta Corp, handling the hospitality and real estate operations. Delta Corp is currently in the process of converting DPPL from a private limited entity to a public company, pending necessary approvals.
Demerger Process and Timelines
The demerger will take place through a Composite Scheme of Arrangement under Sections 230-232, along with Section 66 of the Companies Act, 2013. This scheme is subject to approvals from shareholders, stock exchanges, SEBI, NCLT, and other regulatory authorities, with the process expected to take 10-12 months.
Shareholder Impact
Once the scheme is in effect, Delta Corp shareholders will receive one DPPL share for every Delta Corp share they hold. This ensures that all Delta Corp shareholders will benefit equally from the new entity. Additionally, DPPL shares will be listed on stock exchanges, giving shareholders the opportunity to invest in both Delta Corp and DPPL.s Delta Corp assured that the demerger will not affect employees, customers, or business partners.
Frequently Asked Questions
What is the reason behind Delta Corp's demerger?
The demerger is aimed at unlocking value and creating growth opportunities for both the hospitality and real estate sectors.
What will happen to Delta Corp's shareholders after the demerger?
Delta Corp shareholders will receive one DPPL share for every Delta Corp share they hold, ensuring that all shareholders will benefit equally from the new entity.
Will the demerger affect Delta Corp's employees, customers, or business partners?
No, the demerger will not affect employees, customers, or business partners, according to Delta Corp.
How long will the demerger process take?
The demerger process is expected to take 10-12 months, subject to approvals from regulatory authorities.
What is the current stock performance of Delta Corp?
Delta Corp shares have delivered mixed returns across various time frames, with a notable 6.61% return in the past month and a decline of 5.84% year-to-date.
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