Delta Corp to Acquire Gaussian Network, Parent Co of Adda52 For ₹155 Crores

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  • PG News August 31, 2016
  • 2 Minutes Read

Breaking news has it that Delta Corp is intending to acquire Gaussian Networks Pvt. Ltd., which owns and operates Adda52.com in a deal worth about ₹155 crores.

Delta Corp is the country’s largest and only BSE listed gambling and hospitality company, with several casinos at locations in Goa, Daman and recently received a license for a new one in Sikkim. On Tuesday, the company reported a surge in its share prices, with its all-time high being ₹158.80 a day before, according to the Economic Times. The company stock as rallied over 60% this month and sales increased by over 35%.

Subsequently, Delta Corp had now revealed its plans to expand into the online gaming market by acquiring 26% shares in Gaussian Networks Pvt. Ltd., parent company of Adda52.com, one of India’s oldest and most established network operators. The deal will see Delta pay ₹47.30 crores to Gaussian networks, offering them Optionally Convertible Preference Shares (OCPS), as well Redeemable Preference Shares (RPS) for the eventual amalgamation of the company, as its completely owned subsidiary. The news came to light when Delta Corp made the regulator filing notice about the upcoming deal to the stock exchanges.

The filing said that, “Pursuant to the proposed transaction, Gaussian Network Pvt. Ltd. (“Gaussian”), a wholly owned subsidiary of the Transferor incorporated on June 10, 2011, which owns and operates the online poker website www.adda52.com which is the market leader and India’s no. 1 online poker website, will become a subsidiary of Delta. This will witness Delta’s entry into online space and will give it an instant leadership position in the online poker space.

The consolidated turnover of Gauss and Gaussian for the last 3 financial years is as (a) ₹47.13 Crore for FY 2015-16; (b) ₹35.19 Crore for FY 2014-15; and (c) ₹18.15 Crore for FY 2014-2015.”

It was further noted that Delta would increase its business value and stated, “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.”

The net deal cost for the acquisition of Gaussian Network is ₹155 crores.

Delta informed that the deal was expected to be completed by June 30, 2017 and was subject to regulatory and statutory approval from the stock-exchanges, shareholders and courts.

Leading law firm AZB & Partners are reported to be advisors to Delta Corp for the deal with Khaitan & Co. and Gaggar & Associates acting on behalf of Gaussian Networks.

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