Casino and hotel operator Delta Corp Ltd has said that it will acquire a 45% stake in Waterways Shipyard Pvt Ltd, which owns a shipyard in Udupi, Karnataka, on India’s west coast.
Delta Corp said that it will acquire the shares for Rs 15.5 crore via its subsidiary Delta Pleasure Cruise Co Pvt Ltd.
Delta Corp is currently the only publicly listed gaming and hospitality company in India, going by an investor presentation of the firm.
According to Delta Corp’s exchange filing, Waterways Shipyard has constructed 60 vessels including one named Casino Royale, which is operated by one of its own subsidiaries.
“Given the significance of marine vessels to the company’s casino business, this investment is expected to bring strategic benefits and a long-term partner to support Delta Group’s vessel building and maintenance requirements,” Delta Corp said in its statement.
Incorporated in 1982, Waterways Shipyard had a gross turnover of Rs 11.8 crore for 2018-19, up from Rs 8.6 crore the previous year, but below Rs 13 crore for 2016-17.
Following this announcement, Delta Corp’s stock was trading higher by just under 2% on Friday. Delta Corp says that it plans to close the share purchase by 31 December 2020.