DigiPlus Secures Majority Stake in IEC, Merging Digital & Land-Based Gaming

Philippines-based gaming titan DigiPlus Interactive Corp. has advanced plans to diversify its portfolio through a landmark HK$1.6 billion (US$206 million) investment in International Entertainment Corp (IEC), parent company of New Coast Hotel Manila. Reports reveal the deal involves two tranches of convertible notes, which, if fully exercised, would grant DigiPlus a 53.89% controlling stake in IEC.

The move signals a strategic shift to unify its digital gaming expertise with IEC’s physical assets, aiming to establish a seamless entertainment ecosystem across online and offline platforms.

Operational Flexibility and Integration

DigiPlus outlined that acquiring New Coast Hotel Manila’s parent company would enable deeper brand integration, expanded player outreach programs, and synchronized online and offline customer journeys. These are key steps towards the company’s vision of an “omnipresent entertainment ecosystem.”

The strategy aligns with DigiPlus’ earlier plans to diversify operations geographically, including exploring moves into Brazil and South Africa, as well as locally through land-based casino ventures.

Should the notes remain unconverted, the agreement stipulates a five-year repayment term at 3% annual interest, with a 108% redemption premium. The deal also grants DigiPlus operational flexibility, allowing it to align IEC’s hospitality expertise with its own digital gaming dominance, creating a hybrid model for regional market dominance.

Deal Details

The agreement entails two phases: an initial HK$800 million tranche, followed by a second tranche within three months of the first closing, subject to mutual terms. DigiPlus holds conversion rights at HK$1 per share, which would push its stake above 30%. This would mandate a tender offer under Hong Kong’s Takeover Code unless shareholders grant a “whitewash waiver”. Without this waiver, DigiPlus may redeem the notes instead.

Regulatory approvals from Hong Kong’s Securities and Futures Commission, HKEX, and the Philippine Competition Commission remain pending. IEC confirmed New Coast Hotel Manila operates under a “provisional PAGCOR license,” with over US$1 billion committed to transform the property into an integrated resort. Current facilities include 203 guest rooms, 495 slot machines, and 96 gaming tables. Casino renovations aim for completion by January 2026 and hotel upgrades by Q3 2026.

Leadership Vision

DigiPlus Chairman Eusebio Tanco emphasized the transaction’s importance, calling it a “defining step” toward providing entertainment driven by “cutting-edge technology and localized products.” He framed the deal as expanding an ecosystem blending digital innovation with physical venues to deliver “engaging, responsible, and globally competitive” experiences.