Delta Corp rose 1.56% to Rs 110.90 after the company said that its subsidiary, Delta Pleasure Cruise Company, will acquire up to 45% stake in Waterways Shipyard for consideration not exceeding Rs 15.50 crore.
Waterways Shipyard (WSPL) is currently engaged in the business of owning and operating a shipyard in Udupi, Karnataka. The firm is an established shipyard operator on India's western coast, which has previously constructed over 60 vessels, including the vessel 'Casino Royale' used for casino operations by one of the Delta Corp's 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, the company said in a BSE filing made after market hours on Thursday.
The company added that the subscription is expected to be completed by 31 December 2020, subject to completion of customary conditions precedent and other terms of the transaction documents.
Delta Corp is the only listed company engaged in the casino (live, electronic and online) gaming industry in India.
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