Key Moments:
- DigiPlus Interactive Corp has agreed to acquire HK$1.6 billion in notes for a controlling 53.89 percent interest in International Entertainment Corp (IEC)
- Plans for New Coast Hotel Manila include at least 800 5-star rooms and 250,000 square meters of gross floor area as part of its integrated resort transformation
- Subscription proceeds are allocated for working capital, debt repayment, and significant property upgrades
Strategic Acquisition and Control
DigiPlus Interactive Corp is making a bold move to extend its presence beyond the online gaming arena by investing substantially in International Entertainment Corp (IEC), the parent company of New Coast Hotel Manila. IEC, in a late Monday filing, revealed that DigiPlus has entered a Subscription Agreement to acquire HK$1.6 billion (approximately US$206 million) in notes. Upon conversion, DigiPlus would secure a 53.89 percent controlling stake in IEC based on the expanded share capital.
Normally, this level of ownership would require DigiPlus to issue a mandatory general offer for the remaining shares. However, DigiPlus plans to apply for a Whitewash Waiver from the Hong Kong Securities and Exchange Commission. This waiver, pending approval at an Extraordinary General Meeting, would exempt DigiPlus from such an obligation. If the waiver or shareholder approval is not secured, DigiPlus will decide whether to proceed with the deal and any required mandatory offer.
Broader Horizons Beyond Digital Gaming
This move solidifies DigiPlus’s intent to enter the land-based casino sector and diversify its operations. Helmed by Eusebio Tanco, DigiPlus currently manages the leading online bingo brand BingoPlus, ArenaPlus sportsbook, and the GameZone casual gaming platform. Additionally, DigiPlus is in the process of expanding into the Brazilian and South African iGaming sectors.
Transformation Plans for New Coast Hotel Manila
IEC is advancing its strategy to convert New Coast Hotel Manila into a large-scale integrated resort, following a provisional license granted by PAGCOR in 2023. The company had assumed full casino operational control from PAGCOR last year and committed to investing a minimum of US$1 billion in the overhaul.
| Feature | Details |
|---|---|
| Gross Floor Area | At least 250,000 square meters |
| Hotel Rooms | At least 800 luxury 5-star rooms |
| Retail Space | 20,000 square meters |
| Capital Earmarked for Working Capital | HK$716 million (US$92 million) |
The planned resort is set to include retail areas, casino operations, dining venues, leisure attractions, and shopping arcades. With the hotel and casino currently below the standards required for a full integrated resort, IEC has already started using some of the new funds for property improvements since obtaining its provisional license.
Financial Enhancements and Capital Structure
Beyond property upgrades, the capital raised from DigiPlus’s subscription is set for other financial uses. HK$489 million (about US$63 million) is designated to repay promissory notes, and HK$392 million (US$50 million) will address outstanding bank loans. The notes have a five-year term, which supports IEC’s liquidity and long-term capital strength. Partial or full conversion of notes to equity by DigiPlus would also broaden IEC’s shareholder base.
Paving the Way for Diversified Growth in Philippine Gaming
DigiPlus’s entry into IEC marks a deliberate shift toward land-based assets during a period when online gaming faces regulatory headwinds. By steering IEC’s development of a major integrated resort, DigiPlus demonstrates its aim to diversify income streams and gain a larger foothold in the local gaming sector. The company is aligning its proven online operations with tangible hospitality and gaming investments, potentially driving new momentum for New Coast Hotel Manila’s transformation into a standout destination.
- Author
Daniel Williams
