Delta Corp announces completion of amalgamation of two subsidiaries, to operate Daman Hotel directly

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Delta Corp, the listed casino and hospitality major has announced completion of amalgamation of its two subsidiaries with it. The subsidiaries are Daman Entertainment Private Limited (“DEPL”) and Daman Hospitality Private Limited (“DHPL”). Delta Corp in its recent annual report said the merger will help in optimal utilisation of assets and greater economies of scale.

DHPL operates 176-room five-star hotel and the largest integrated resort spread over 10 acres in Daman under the brand name ‘The Deltin’. DHPL had applied for a casino license which is currently pending. In September, rumours about casino license approval resulted in shares spiking and later tanking.

Daman and Diu is one of three states and union territories in India where casino gaming is legal but there are currently no casinos in operation. Delta in 2018 approached Bombay High Court seeking casino license in Daman. This case is currently pending.

Deltin Group currently has three offshore casinos and two land-based casinos in Goa and one land-based casino each in Sikkim and Nepal.

Delta Corp acquired DHPL from NYSE Euronext Amsterdam-listed Thunderbird Resorts, initially in 2011 with a 51% share purchase and increasing the stake to 100% over the years. With this merger, the hotel and the integrated resort will come under the direct control of Delta Corp.

In related news, Delta Corp this year announced public offering of Deltatech Gaming Limited (DGL) worth INR 550 crores.

Delta Corp this month said, it will pursue legal action after the Government of Goa issued an order for payment of casino license fees during periods in 2020 and 2021 when the company’s casinos were closed due to COVID-19.

Delta Corp disclosed in October 2021 that it had set aside INR 26.67 crore in fees for the year but had not made payment, instead requesting the government to either waive or provide a reduction on its casino license fees for periods in which its casinos were impacted due to Covid19.