Delta Corp's board of directors of the gaming and hospitality firm approved the demerger of its Hospitality and Real Estate businesses into a newly formed entity, Delta Penland Private Limited (DPPL).
Delta Corp currently operates in multiple segments including Casino Gaming, Online Gaming, Hospitality and Real Estate. This strategic move aims to unlock value and create enhanced growth opportunities for both sectors.
According to the demerger details, DPPL will be a wholly owned subsidiary of Delta Corp post demerger and will carry on the hospitality and real estate business. The company is in the process of converting from a private limited company to a public company pending approvals.
The demerger will be done through a Composite Scheme of Arrangement under Sections 230-232 read with Section 66 of the Companies Act, 2013. The scheme is subject to approvals from shareholders, stock exchanges, SEBI, NCLT and other regulatory bodies which will take 10-12 months, Delta Corp informed.
Upon the scheme coming into effect, shareholders of Delta Corp will get one share of DPPL for every share held in Delta Corp. This will ensure that all shareholders of Delta Corp will be the ultimate beneficiary of DPPL in the same proportion.
DPPL shares will be listed on the stock exchanges and shareholders will have the opportunity to invest in both Delta Corp and DPPL. "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", the company said.
