Ability Games Ltd and Ashtek Consultancy Pvt Ltd acquired Deltin Nepal Pvt Ltd – a Nepal-based casino owned by this small-cap company – details inside

The stock is down by 45 per cent from its 52-week high of Rs 259.95 while it is up by 15 per cent from its 52-week low of Rs 124.60 per share.

Gaming and hospitality giant Delta Corp Limited (DCL) has announced the sale of its entire stake in Caravella Entertainment Private Limited (CEPL) to Ability Games Limited and Ashtek Consultancy Private Limited for Rs 62 crore. This move aligns with DCL's strategy to optimize its portfolio and focus on core objectives.

CEPL: This wholly-owned subsidiary of DCL held an 89.29 per cent stake in Deltin Nepal Private Limited (DNPL), which operates casinos in Nepal.

Sale Value: The enterprise value of the deal is Rs 80 crore, comprising Rs 18 crore of parent debt and Rs 62 crore of equity value.

Completion Date: The sale is expected to be finalized by March 8, 2024.

Buyers: Both Ability Games Limited and Ashtek Consultancy Private Limited are independent entities unaffiliated with DCL's promoter group.

Post-Sale: DNPL will retain the right to use the "Deltin Casino International" trademark for a two-year transition period.

DCL cites portfolio optimization and enhanced shareholder value as the primary reasons for this divestment. This suggests the company may be looking to concentrate on its core Indian casino operations and explore new avenues for growth within that market. The financial impact of this sale is expected to be moderate, considering the relatively small contribution of CEPL and DNPL to DCL's overall turnover and net worth. However, it signals a strategic shift for the company, indicating a potential refocusing of its business priorities.

Overall, this transaction marks Delta Corp's move to streamline its portfolio and potentially explore new areas within the Indian gaming industry. The success of this strategy will depend on the company's ability to leverage its existing strengths and capitalize on future growth opportunities.

Today, shares of Delta Corp Ltd plunged 0.69 per cent to Rs 143.20 per share with an intraday high of Rs 147.10 and an intraday low of Rs 142.75. The stock is down by 45 per cent from its 52-week high of Rs 259.95 while it is up by 15 per cent from its 52-week low of Rs 124.60 per share. The company has a market cap of over Rs 3,800 crore and investors should keep an eye on this small-cap stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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