Delta Corp Ltd., India’s largest gaming and hospitality company has informed its intention to acquire 26 percent shares in Gauss Networks Pvt. Ltd., owner and operator of online poker brand Adda52.com.
According to GLaws, Delta Corp is expected to pay Rs. 47.30 crores ($7.1 million) in cash for acquisition of 26 percent of the shares of Gaussian Networks, and offer Optionally Convertible Preference Shares (OCPS) as well Redeemable Preference Shares (RPS) to the founder shareholders of Gaussian Networks for eventual amalgamation of the company as its wholly owned subsidiary. The total deal size is expected to be approximately Rs. 155 crores.
“With this transaction, Delta will widen its business horizon and increase its overall footprint, thereby consolidating its overall leadership position. This transaction is not only synergetic from business and growth perspective but will also provide financial strength and flexibility to Delta,” said Delta Corp in a filing.
Delta Corp also noted that the proposed acquisition and amalgamation will be completed by June 30, 2017 and is subject to regulatory and statutory approval from the shareholders, stock-exchanges and courts.
Leading law firm AZB & Partners is believed to have advised Delta Corp in the deal while Khaitan & Co. and Gaggar & Associates have acted on behalf of Gaussian Networks and its promoters.