Delta Corp Ltd announced on Tuesday, September 24, that its board of directors has approved a Composite Scheme of Arrangement for the demerger of its hospitality and real estate businesses.
The demerger will enable Delta Corp to sharpen its focus on gaming and online entertainment, while the newly established company will specialize in hospitality and real estate.
Delta Penland Private Ltd, a newly incorporated entity, will take over the hospitality and real estate operations. It will operate as a wholly-owned subsidiary of Delta Corp.
Under the proposed arrangement, Delta Corp shareholders will receive one equity share in Delta Penland Private for each share they hold in Delta Corp, allowing them to maintain the same ownership ratio in the newly demerged company.
The proposed reorganization seeks to create value by enhancing the company's ability to access capital more flexibly. This structure will attract partners and investors who are specifically aligned with each business sector.
By enabling a targeted management approach, the organization can pursue revenue growth and expansion opportunities more effectively.
Additionally, this reorganization aims to minimize risks for the newly demerged entity, ensuring that each business can operate with greater focus and agility in their respective markets.
According to the statement, “A clear corporate structure with no cross-holdings will promote transparency, accountability, and the highest standards of corporate governance and compliance. It will also improve operational flexibility and enable swift responses to competitive or environmental challenges.”
Shares of Delta Corp closed 1.6% lower at Rs.129.25 each before the announcement, in contrast to a flat BSE Sensex.
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