Delta Corp announced that the company board of directors have approved the demerge of its hospitality and real estate business. In a regulatory filing, the company said that Delta Penland Private Limited (DPPL), which is a newly incorporated company and also a wholly owned subsidiary of Delta Corp, will manage the hospitality and real estate business. DPPL is in the process of converting from a private limited company to a public company and necessary approvals in this regard are awaited, the company said.
Delta Corp is engaged in the business of gaming (live, electronic, and online); and hospitality and real estate. The hospitality and real estate 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 spread over 10 acres located in Daman; Marvel Resorts, a proposed approx. 440 room hotel spread over 8,000 square metres in Goa currently under advanced stage of construction; and land situated in Dhargalim, Goa, where it is proposed to develop an integrated resort with a water park spread over 88 acres. The company also holds investments in hospitality and real estate companies.
The demerger will be done subject to approval of the shareholders of the company, stock exchanges, SEBI, NCLT and such other regulatory approvals as may be required which will take between 10 to 12 months, the company said.
WhatsAapp rolls out major update for Android users: Community ownership transfer and more
‘Malpe’ & ‘Mulki’ ASW Shallow Water Craft Launched: A Key Step Outpacing China’s Coastal Fleet
Investment rate of 36% needed for 8% GDP growth: PFRDA Chairman
Coming Soon: Now you can open a fixed deposit with a 20-year tenure – What you need to know
“As per the share entitlement ratio determined by SSPA & Co., Chartered Accountants, the Resulting Company will issue and allot to eligible shareholders 1 new equity share of face value of Re 1 each, credited as fully paid-up, for every 1 equity share of face value of Rs 1 each fully paid-up held by such shareholders in the company,” Delta Corp said.
Objective of the demerger
Delta Corp said that the demerger will lead to simplified corporate structure that will make it easier for the management of the company to focus on its core business, i.e., gaming, thereby improving operational efficiency and accountability. The resulting company will focus on hospitality & real estate business.
Further, it added that the company does not get desired value for its hospitality and real estate business as it is mainly seen as a company engaged in gaming business. “Once the scheme is effective, there will be two separate robust listed entities viz., the resulting company focussing exclusively on the hospitality and real estate vertical and the company shall continue to be in the gaming business, effectively, giving an opportunity to the Investors to continue in both companies or either one.” it said. This, Delta Corp added, will help both the entities tap respective sectoral growth strategies which will eventually attract specific investors.
From: financialexpress
Financial News
