Delta Corp Ltd picks up majority stake in Daman Hospitality Pvt Ltd

Delta Corp Ltd has acquired a 51 per cent stake in Daman Hospitality Pvt Ltd. The investment is for a consideration of Rs.50 Crore. The acquisition helps Delta to enhance its presence in the gaming and hospitality space, reported Deal Curry.

Daman Hospitality runs 'Thunderbird Resorts', a five star deluxe resort situated in Daman, comprising of 176 rooms, having 30,000 sq ft for indoor events and 70,000 sq ft of leisure area including outdoor pools and other entertainment areas. The hotel has three bars and four restaurants.

The hotel also has a high end shopping arcade, spread over 8,000 sq ft. Construction of the hotel is substantially completed and Delta Corp will infuse further Rs.40 crore to complete the project.

Deal Curry indicated that the project is expected to be ready in 6-8 months. Delta Corp, through its subsidiary, will also set up and operate a 60,000 sq ft casino in the property.  Earlier this year, Delta Corp through its subsidiary Delta Hospitality and Leisure Pvt Ltd bought around 67-100 per cent stake in Marvel Resorts Pvt Ltd for up to Rs.54 Crore.

Recently, Delta also acquired The M.V. Horseshoe Casino from Harrah's Corp Inc. (Caesars Palace, Las Vegas) which is expected to arrive in India by end of June 2011. This 70,000 sq ft floating facility will add another 1,500 gaming positions to the Group's existing 725 gaming positions, said the Deal Curry report.

Originally a textile firm, Delta Corp had undergone into restructuring in 2009, whereby it became hospitality, gaming, real estate and aviation player and de-merged its textile business to Arrow Textiles Limited.

Delta Corp owns two offshore Casinos in Goa - Casino Royale and King’s Casino. Company also owns a minority stake in Advani Hotels & Resorts that owns 'Ramada Caravela Beach Resort' and also operates offshore Casino Goa onboard 'MV Caravela'.

Company offers chartered flights through AAA Aviation Pvt Ltd and also owns a real estate company in East Africa in Nairobi through a 40:60 JV with Reliance Industries. The JV has developed a commercial property 'Delta House' which is leased out.

In October last year, company had raised around Rs.324 crore through a mix of shares and convertible warrants issue from group of individual investors including Rakesh Jhunjhunwala, his wife Rekha, Radhakishan Damani and also from company's promoter group.

Private equity firm ICICI Ventures holds 7.16 per cent, while BCCL through Brand Equity Treaties Ltd holds 1.32 per cent, reported Deal Curry.

13th May 2011