Digiplus moves to acquire majority stake in IEC
Digiplus Interactive is set to expand into land-based casino and resort development after signing a convertible notes agreement that provides the right to acquire a controlling stake in International Entertainment Corp., operator of New Coast Hotel Manila.
Digiplus Interactive has taken a formal step toward entering the brick-and-mortar casino sector, confirming it has secured the rights to acquire a majority stake in Hong Kong-listed International Entertainment Corp. (IEC) for ₱12bn.
In a disclosure to the Philippine Stock Exchange, the company said it has signed a convertible notes agreement granting it the option to obtain a controlling economic interest in IEC. Through its subsidiaries, IEC owns and operates New Coast Hotel Manila, an integrated hotel-casino complex licensed by the Philippine Amusement and Gaming Corp. (PAGCOR).
“Upon conversion of the notes, the acquisition will strengthen Digiplus’ omnipresent entertainment ecosystem by adding a strategic offline platform that seamlessly connects with its digital network, enhancing brand activation, player engagement, and customer experience across both physical and online touchpoints,” the company said.
The agreement covers 1.6 billion convertible notes valued at HK$1.6bn, to be issued in two tranches. The first tranche of HK$800m will close once customary conditions are met, with the second tranche to follow within three months subject to mutually agreed terms.
If Digiplus opts to convert the notes at the agreed initial price of HK$1 per share, it would hold approximately 53.89 per cent of IEC’s issued capital. The notes carry a 3% annual interest rate and may instead be redeemed at 108 per cent at the end of the five-year maturity if Digiplus decides not to convert.
IEC noted in a separate Hong Kong disclosure that any conversion above a 30 per cent stake would trigger a mandatory tender offer under Hong Kong’s Takeover Code unless shareholders approve a whitewash waiver. If the waiver is denied, Digiplus may choose to keep the notes unconverted and redeem them at maturity.
New Coast Hotel Manila, located on Roxas Boulevard in Malate, currently features 203 rooms, 96 gaming tables and 495 slot machines. The property is undergoing a US$1bn renovation, with the casino slated for completion in January 2026 and the hotel refurbishment targeted for Q3 2026.
According to Digiplus, the potential acquisition provides an opportunity to align IEC’s hospitality and gaming expertise with its own digital entertainment capabilities. “This move marks a defining step toward Digiplus’ long-term goal to create the most innovative and enjoyable experiences through an entertainment ecosystem, powered by cutting-edge technology and localised products for different cultures,” said Digiplus Chairman Eusebio Tanco.
