Delta Corp Limited to merge its subsidiary Deltatech Gaming Limited with Head Digital Works Private Limited

Delta Corp Limited (BSE: 532848, NSE: DELTACORP) ("DCL"), India's leading listed casino and gaming company has entered into an agreement with Head Digital Works Private Limited ("HDW") for the acquisition of Deltatech Gaming Limited ("DGL") (which runs an Online Poker Platform under the name 'Adda52'), by HDW, (which runs an Online Rummy and Online Poker Platform under the brand 'A23') and the subsequent merger of DGL with HDW, for a total consideration of approximately INR 491 Crore.

The transaction shall be done in 2 parts with an initial acquisition of 51% of DGL by HDW, followed by a merger of DGL with HDW. Upon completion of the merger, DCL will hold 5.7% stake in HDW.

Adda52 is one of India's oldest online poker platforms. HDW operates India's marquee gaming brand 'A23'. They are the pioneers of online rummy and real-money gaming in India and their gaming portfolio comprises online rummy, poker and cricket content. Their rummy brand A23 Rummy is one of the largest real-money Rummy platforms in India with 75million+ users.

Commenting on the development, Ashish Kapadia, Managing Director, DCL said: "We're excited for this journey with Deepak and team, whose leadership has been instrumental in shaping the online Rummy market in India. We believe that this transaction will help Adda52's leading position in the online poker market."

Deepak Gullapalli, Founder and CEO of HDW, also shared his views: "HDW is the pioneer in online gaming in India and we are excited to work with one of India's best known poker brands Adda52. Adda52 has been a leader in online poker in India and has an excellent platform and a strong user base. This transaction will help grow our poker business and help us create a leading diversified card based gaming platform in India."

Indium Capital Advisors was the exclusive Investment Banking advisor, AZB & Partners advised DCL, and Spice Route Legal advised HDW, on this transaction.

Shares of Delta Corp Limited was last trading in BSE at Rs. 99.90 as compared to the previous close of Rs. 95.95. The total number of shares traded during the day was 131125 in over 1771 trades.

The stock hit an intraday high of Rs. 102.00 and intraday low of 95.70. The net turnover during the day was Rs. 13101773.00.

Source : Equity Bulls

Keywords

DeltaCorp INE124G01033 DeltatechGaming Merger HeadDigitalWorks