Shares of Delta Corp surged over 8 percent on September 25 after the company announced a major restructuring plan. The board of the gaming and hospitality firm has approved the demerger of its Hospitality and Real Estate businesses into a newly established 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 is aimed at unlocking value and providing distinct growth opportunities for each business sector.
Under the demerger arrangement, DPPL will be a wholly owned subsidiary of Delta Corp and will manage the hospitality and real estate operations. The new entity is set to transition from a private limited company to a public company, pending necessary approvals.
The demerger will be executed through a Composite Scheme of Arrangement under Sections 230-232 and Section 66 of the Companies Act, 2013. It involves shareholder approvals, stock exchange approvals, approvals from SEBI, NCLT, and other regulatory bodies, and is expected to take close to 10-12 months, it added.
Once the scheme takes effect, the shareholders of Delta Corp shall be issued one equity share of DPPL for every share held in Delta Corp, and thus the proportionate interest of the Delta Corp shareholders in the new entity is preserved. The shares of DPPL shall be listed on the stock exchanges and, as such, the shareholders can also invest separately in Delta Corp and DPPL shares.
At 9:16 am, shares of Delta Corp rose over 7 percent to Rs 139.65 on the NSE. The stock, though, has lost 8 percent this year so far, sharply underperforming the 19 percent rally seen in the Nifty index during the same period.
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Source: Moneycontrol
News Desk
