The Feb. 26 special meeting cleared DigiPlus to subscribe to HK$1.6 billion (about P12 billion) in convertible notes that can be turned into a majority stake in the Hong Kong-listed gaming firm within three years.
DigiPlus, behind popular digital gambling platforms like BingoPlus and ArenaPlus, is expected to own about 54 percent of IEC, which owns and operates New Coast Hotel Manila, a Philippine Amusement and Gaming Corp.-licensed hotel-casino complex along Roxas Boulevard.
DigiPlus and IEC have common shareholders.
New details
Shareholders of IEC approved a whitewash waiver allowing DigiPlus to cross the 30 percent control threshold without launching a full buyout offer.
The filing said conditions for the first completion of the subscription have already been satisfied, indicating the deal is progressing toward closing.
The transaction marks DigiPlus’s largest move into land-based casinos as it expands beyond online gaming.
What’s the play?
An insider previously explained DigiPlus can realize tax advantages by operating an integrated casino, even before converting its shares.
The convertible notes carry a 3 percent annual interest rate and, if not converted into shares, will be redeemable at 108 percent after five years.
The structure lets DigiPlus secure future majority control while initially holding the investment as interest-earning debt.
IEC is also investing heavily to expand its Manila integrated resort under a PAGCOR provisional license that requires a total commitment of up to $1.2 billion (P70 billion).
New Coast Hotel Manila being renovated, eyes July 2026 grand opening
In a filing in Hong Kong, IEC said it completed the casino ground floor renovations last January.
This increased gaming tables from 99 to 116 and machines from 517 to 664.
“With further facility upgrades scheduled for completion, the group anticipates a grand reopening of the Hotel in July 2026,” IEC said.
Losses despite revenue jump
The company’s base business is heavily driven by its casino operations in Manila, which generated HK$442.5 million (about P3.27 billion) in gaming revenues during the six months to December 2025, up 84 percent and accounting for about 96 percent of group revenue.
Despite higher sales, the company still posted a net loss of HK$85.8 million (about P635 million), lower by nearly 10 percent from the comparable six-month period in 2024.
The hotel segment brought in HK$16.5 million (about P122 million), down 40 percent due to ongoing room renovations at New Coast Hotel Manila.
No revenue was recorded from live poker events during the period in Macau.
IEC said the DigiPlus convertible-notes investment is expected to “significantly bolster the Group’s liquidity and long-term financial position.”
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
