DIGIPLUS Interactive Corp. on Monday said that it had signed a P12-billion deal to acquire a controlling stake in Hong Kong-listed International Entertainment Corp. (IEC), the operator of a hotel and casino complex in Manila.
DigiPlus told the stock exchange that the convertible notes agreement with IEC, valued at HK$1.6 billion or about P12 billion, would involve two tranches: the first HK$800 million once “customary conditions” are met and the balance to follow within three months.
IEC, through its subsidiaries, owns and runs New Coast Hotel Manila, a hotel and casino complex on Roxas Boulevard that is licensed by the Philippine Amusement and Gaming Corp. (Pagcor).
DigiPlus said the acquisition would strengthen its entertainment ecosystem by integrating an offline platform into its existing digital network to enhance brand activation, player engagement and customer experience.
“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 localized products for different cultures,” Chairman Eusebio Tanco said in a statement.
DigiPlus has the option to convert the notes at an initial price of HK$1 per share. Once completed, the company will own about 53.89 percent of IEC’s issued capital stock.
The notes carry a 3-percent annual interest rate. If DigiPlus opts not to convert, the notes will be redeemable at 108 percent at the end of their five-year maturity.
In a separate disclosure to the Stock Exchange of Hong Kong, IEC said that the conversion price was arrived at “after arm’s length negotiations” and was considered “fair and reasonable.”
New Coast Hotel Manila, formerly New World Hotel Manila, has 203 guest rooms, 96 gaming tables and 495 slot machines. The complex is undergoing renovation, with the casino slated for completion in January 2026 and the hotel by the third quarter of 2026.
The deal remains subject to approval by IEC shareholders as well as clearances from the Hong Kong Securities and Futures Commission and the Hong Kong stock exchange. Conversion of the notes will also require approval from the Philippine Competition Commission.
Last September, DigiPlus said it was evaluating potential acquisitions that may complement its existing digital assets as part of a strategic expansion program amid ongoing uncertainties in the online gaming industry.
The company posted a consolidated net income of P10.11 billion in the first nine months of 2025, up 16 percent from a year earlier, on the back of a 30-percent rise in total revenues due to higher business activity and new licenses approved by Pagcor.
Tighter regulations weighed on its third-quarter performance, however, with net income dropping 59 percent year on year to P1.71 billion while revenues fell 23 percent to P19.05 billion due to an e-wallet delinking directive requiring providers to separate in-app access to licensed gaming platforms.
DigiPlus shares dropped P1.30, or 4.94 percent, to close Tuesday at P25 apiece amid a 0.39-percent drop for the benchmark Philippine Stock Exchange index.