The Board of Directors of India’s Delta Corp has approved a demerger plan that, pending the green light from shareholders, will see the company separate its gaming and real estate businesses.
Under the demerger plan, to be activated by way of a Composite Scheme of Arrangement, the existing company will continue to oversee land-based and online gaming operations while a newly incorporated company called Delta Penland will assume control of the hospitality and real estate businesses.
It has been proposed that existing Delta Corp shareholders will assume one equity share in Delta Penland for every share they hold in Delta Corp to ensure they maintain an identical ownership ratio.
Shares in Delta Penland will also be listed on India’s stock exchange in a move designed to unlock value and potentially open the door for new investors.
It is expected that the demerge process would be completed inside the next 12 months.
Delta Corp’s existing operations include offshore casinos Deltin Royale, Deltin JAQK, and Kings Casino in Goa, onshore casinos in Goa, Sikkim, and Nepal and popular online skill gaming websites Adda52.com and Adda52rummy.com.
Its hospitality business includes the all-suite Deltin Suites in Goa and 176-room The Deltin Daman.
The company recently reported a 21.5% year-on-year decline in income from operations of Rs 218.31 crores (US$26.1 million) for the three months to 30 June 2024.
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