Listed gaming and hospitality company Delta Corp Limited has unveiled a plan to divest its holding in its wholly-owned subsidiary Caravella Entertainment Private Limited, which holds an 89.28 percent stake in Deltin Nepal Private Limited.
Delta Corp has inked a deal to sell its entire stake to Kolkata-based gaming company Ability Games Limited and Ashtek Consultancy Private Limited for a total enterprise value of Rs. 80 crores ($9.6 million).
Ability Games Limited, known for operating the online gaming website 11wickets and promoting the listed online game development company Yudiz Solutions and sports-content platform Crictracker, will acquire the majority stake in Deltin Nepal Private Limited.
According to Delta Corp’s disclosure to the stock exchanges, the valuation comprises Caravella’s debt of Rs. 18 crores ($2.1 million) and equity consideration of Rs. 62 crores ($7.4 million).
The transaction is slated for completion by March 8 with Deltin Nepal Private Limited retaining the right to use the “Deltin Casino International” and related trademarks for a transitional period of two years post-completion.
By divesting its stake in Caravella Entertainment, Delta Corp Limited aims to streamline its portfolio and concentrate on core objectives, in line with its overarching vision for growth and sustainability.
This move comes amidst the backdrop of significant regulatory and taxation challenges faced by the casino industry in India, including the imposition of a 28 percent GST on initial deposits from 1st October, 2023.
