Delta Corp to demerge hospitality, real estate biz; share price gains 8%
Source: Business Standard
Shares of Delta Corp were up 7.66 per cent at Rs 139.15 per share on the BSE
At around 9:22 AM, shares of Delta Corp were up 7.66 per cent at Rs 139.15 per share on the BSE. By comparison, the BSE Sensex traded 0.08 per cent lower at 84,843.12 around the same time.
“The Board of Directors of the company has considered and approved the draft composite scheme of arrangement between the company and Delta Penland Private Ltd (DPPL) — a newly
incorporated company,” Delta Corp’s stock exchange filing read.
It added: The Scheme provides for the demerger of the company’s hospitality and real estate business to DPPL.
Additionally, 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.
“Upon the Scheme becoming effective, all shareholders of the Company are and will be the ultimate beneficial owners of the Resulting Company in the same ratio (inter se) as they hold shares in the Company. The shares of the Resulting Company shall be listed on the stock exchanges pursuant to the Scheme. The Scheme will have no impact on employees, customers and our business partners,” Delta Corp said.
As per the filing, the turnover of Delta Corp hospitality and real estate business as of March 31, 2024, stood at Rs 4.58 crore, which is 0.7205 per cent of the total turnover of Delta Corp.
The casino player’s 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 and the largest integrated resort, Daman; Marvel Resorts, a proposed 440-room hotel in Goa; and land situated in Dhargalim, Goa, where it is proposed to develop an integrated resort with a water park spread over 88 acres.
As far as The Deltin, Daman, the board has proposed to execute a contract between the DPPL and Delta Corp for its management and the property would continue to be owned by Delta Corp.
Change in shareholding pattern
There will be no change in the shareholding pattern of Delta Corp but in case of DPPL, while the promoters will hold 1 million shares (33.26 per cent) with no change in holding pattern, 17,87,20,657 shares will be kept as public shareholding (66.74 per cent)
In the past one year, shares of Delta Corp have lost 9.6 per cent against BSE Sensex’s rise of 28.6 per cent.
First Published: Sep 25 2024 | 10:04 AM IST
