Delta Corp okays demerger of hospitality and real estate business

25 Sep 2024 , 12:33 PM

Delta Corp Ltd, an online gaming company, announced on Tuesday (September 24) that its board of directors has approved the demerger of its hospitality and real estate businesses via a composite scheme of arrangement.

Following this development, company’s counter jumped as much as 10%.

Delta Corp’s focus on gaming and online entertainment will be streamlined as a result of the demerger, while the newly established business will concentrate on hospitality and real estate.

Delta Penland Private Ltd is a newly formed company that will continue in the hotel and real estate industries. Delta Penland is a completely owned subsidiary of the firm.

Under the proposed arrangement, Delta Corp shareholders will receive one equity share in Delta Penland Private for each Delta Corp share maintained, ensuring that shareholders maintain the same ownership percentage in the demerged corporation.

Delta Penland Private’s shares will be listed on stock exchanges, providing stockholders with liquidity and targeted investment opportunities in the hotel and real estate industries. SSPA & Co., Chartered Accountants established the share entitlement ratio based on a fairness opinion report submitted by Kunverji Finstock Private Limited.

The demerger is estimated to take 10 to 12 months to complete, depending on clearances from shareholders, stock exchanges, SEBI, and the National Company Law Tribunal. According to management, the strategy will have no meaningful impact on the company’s employees, customers, or business partners throughout the changeover.

At around 10.33 AM, Delta Corp was trading 5.24% higher at ₹136.25, against the previous close of ₹129.46 on NSE. The counter touched an intraday high and low of ₹142.18, and ₹135.25, respectively.

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