ICICI Ventures-backed Delta Corp is acquiring a majority stake in Marvel Resorts Private Limited for up to Rs 54 crore ($12 million) to strengthen its position in the offshore and onshore casino space in one of the top Indian tourist destinations, Goa.
The deal could involve stake purchase of anywhere between 67-100% and the transaction value will accordingly range between Rs 36-54 crore. As part of the transaction, Delta will also assume the debt lying in Marvel.
Marvel owns approximately two acres in the capital city of Panjim, Goa and has approved plans for a five star hotel to be built on the same land parcel. With the acquisition, Delta proposes to develop a land-based casino in the five-star hotel. Delta Corp is acquiring the stake through its subsidiary Delta Hospitality and Leisure Private Limited.
Delta Corp had recently raised Rs 285.48 crore through a mix of shares and equity convertible warrants issue to a group of largely individual investors including ace investor Rakesh Jhunjhunwala alongwith his wife.
The company that was originally a textile firm had over the last two years undergone a business restructuring whereby it has become a hospitality and real estate player by demerging textile business to Arrow Textiles.
The largest shareholder of Delta Corp is Zia Jaydev Mody (one of the top corporate lawyers of the country and daughter of Soli Sorabjee) who is married to Jaydev Mody who in turn is related to the Piramals and has been engaged in real estate sector.
ICICI Venture bought 14.99% in Delta (then Arrow Webtex) for Rs 82 crore at a price of Rs 40.5 per share. Its holding has since then whittled down to just over 7% due to subsequent issues and some share sale in open market transactions. Other investors in the company include BCCL (through Brand Equity Treaties Ltd).
Delta Corp owns two offshore Casinos in Goa– Casino Royale and King’s Casino. It also owns a large minority stake in Advani Hotels & Resorts that in turn owns Ramada Caravela Beach Resort and also operates offshore Casino Goa onboard MV Caravela.