Delta Corp, a leading player in the gaming industry, has announced the sale of a 51% stake in its skill gaming unit, Deltatech Gaming. Deltatech Gaming is known for running the popular online poker platform, Adda52. The stake is being sold to Head Digital Works, the parent company of the A23 brand, for a deal valued at Rs 491 crore. This strategic move aims to bolster Head Digital Works’ position in the competitive online gaming market.
The transaction will be executed in two phases. The first phase will involve a combination of cash and stock deal, followed by a merger. After the merger, Delta Corp will retain a 5.7% stake in the combined entity. This decision comes in the wake of regulatory challenges and the implementation of a 28% GST regime in the gaming sector, which has impacted the overall market dynamics. By divesting its stake, Delta Corp aims to navigate these challenges more effectively while strengthening its strategic partnership with Head Digital Works. This move is expected to create synergies and drive growth in the online poker space, benefiting both companies and their stakeholders.
