Major Gaming Deal: Leading Casino Operator Sells Stake in Online Gaming Giant

A strategic move reshapes the online gaming industry with a multi-crore acquisition and merger plan.

Delta Corp Limited and its subsidiary, Deltatech Gaming Limited (DGL), have signed agreements with Head Digital Works Private Limited. As per the deal, Head Digital will initially acquire 51 per cent of DGL, with plans to merge DGL into Head Digital in the future.

Shareholding Changes
Following the acquisition, Delta Corp will receive around 5.7 per cent equity in Head Digital. The transaction is subject to shareholder approval, with an extraordinary general meeting scheduled for March 21, 2025.

Financial Consideration
The deal values DGL at approximately Rs 491.26 crore. Head Digital will pay Rs 34.8 crore in cash and issue equity shares as part of the transaction.

Expected Completion Timeline
The acquisition of a 51 per cent stake is expected to be completed by April 6, 2025. The merger of DGL into Head Digital is projected to conclude by June 30, 2026, pending regulatory approvals.

About Head Digital Works
Head Digital is a leading online real-money gaming company in India. It operates the 'A23' brand, offering online rummy and poker. Established in 2017, the company has a strong record of growth and profitability.

Regulatory and Compliance Details
Head Digital is not a part of Delta Corp’s promoter group, and the transaction does not qualify as a related-party deal. The transaction is also outside the scope of a slump sale or scheme of arrangement.

With this deal, Delta Corp aims to streamline its business while gaining a stake in one of India’s largest online gaming firms. The transaction highlights the growing demand for real-money gaming platforms in India.

Disclaimer: The article is for informational purposes only and not investment advice.