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.
Related News Articles
India's Residential Real Estate Sector Hits 1 Billion Square Foot Mark in FY24
The Indian residential real estate sector has achieved a milestone of 1 billion square foot sales in FY24, driven by strong sales volume and healthy price growth.
Boom in Residential Property Market: Delhi-NCR and Mumbai See 50% Price Hike
Residential property prices in Delhi-NCR and Mumbai have skyrocketed by 50% due to increased demand and infrastructural development.
UP Builders May Lose Land for Failing to Pay Rehabilitation Advance
The move aims to ensure transparency and accountability in real estate development, ensuring that only serious builders participate in these housing projects.
Pune Fire Brigade Rescues Mentally Ill Man Trapped on Fourth Floor of Kondhwa Building
The Pune Fire Brigade swiftly responded to a distress call and successfully rescued a mentally ill man trapped on the fourth floor of a building in Kondhwa. The operation was completed within 20 minutes, ensuring the safety of the individual.
Dharavi Redevelopment Project Includes Former Vacant Land Tenants
The Maharashtra government has taken a significant step in the Dharavi Redevelopment Project by including former tenants of vacant land. This move is aimed at ensuring a more inclusive and equitable urban transformation. Real estate experts and local resi
CREDAI Hyderabad Advocates for Robust Real Estate Reforms in Union Budget 2025-26
The Confederation of Real Estate Developers' Associations of India (CREDAI) in Hyderabad has urged the government to implement stronger real estate reforms in the upcoming Union Budget 2025-26. The organization emphasizes the sector's significant role in