ICICI Ventures-backed Casino owner Delta Corp may sell stake
09 Sep 2011
ICICI Ventures-backed casino and hospitality company Delta Corp is in talks with some of the world's leading hotel and casino operators, including MGM Resorts International to sell a stake, The Economic Times today reported.
Delta Corp, which last year raised Rs285.48 crore through a mix of shares and equity convertible warrants, has appointed Citi Group and Swiss lender UBS to find a strategic investor, the paper said, citing its founder Jaydev Mody.
Among the potential investors, Delta is also in talks with US-based Caesars Entertainment, one of the world's largest casino operators, Mody told the the paper.
Originally a textile firm, Delta had undergone a business restructuring over the last two years and entered the hospitality and gaming business after demerging its textile business to Arrow Textiles.
The largest shareholder in Bombay Stock Exchange listed Delta is Mody's wife Zia Mody, a leading corporate lawyer and daughter of former solicitor general Soli Sorabjee. Jaydev Mody is also related to the Piramal family.
ICICI Venture had acquired a 14.99-per cent in Delta, which has now been reduced to just over 7 per cent due to subsequent issues and some share sale.