DigiPlus Interactive Corp., one of the Philippines’ dominant eGames operators, has taken a major step toward expanding its presence beyond digital entertainment by securing rights that could give it control of International Entertainment Corp (IEC), the parent company of New Coast Hotel Manila. Through a recent Subscription Agreement valued at HK$1.6 billion, the company aims to integrate online innovation with an established land-based operation, reshaping its position in the region’s gaming landscape.
A Strategic Shift Into Land-Based Operations
According to details first highlighted by Inside Asian Gaming, DigiPlus has agreed to subscribe to HK$1.6 billion (US$206 million) in convertible notes issued in two equal tranches. If fully converted, these notes would provide DigiPlus with a 53.89% stake in IEC, effectively securing control of New Coast Hotel Manila. The company has emphasized that the potential acquisition is designed to reinforce an “omnipresent entertainment ecosystem” that merges its digital strengths with a strategic offline anchor.
The firm explained that gaining access to New Coast would allow it to enhance brand activation, broaden player engagement initiatives, and link customers’ online and in-person experiences in a unified network. This direction aligns with DigiPlus’ previously stated intention to diversify both geographically—into markets such as Brazil and South Africa—and operationally, including possible entry into physical casino operations.
Should the company ultimately decline to convert the notes, the agreement provides a five-year maturity with a 3% annual interest rate and a redemption value of 108%. The subscription also gives DigiPlus flexibility in its group structure, enabling it to merge IEC’s hospitality and casino management capabilities with its digital entertainment leadership.
IEC disclosed that the subscription comprises two stages: an initial HK$800 million tranche followed by a second tranche within three months of the first closing, contingent on mutually agreed terms. DigiPlus retains the right to convert the notes at an agreed conversion price of HK$1 per share. Should it exercise this option, the resulting stake would surpass 30%, triggering a mandatory tender offer requirement under Hong Kong’s Takeover Code unless IEC shareholders approve a whitewash waiver.
If such a waiver is not obtained, DigiPlus may instead opt for redemption rather than convert the notes into equity. The completion of the transaction is subject to several regulatory approvals, including clearance from the Securities and Futures Commission of Hong Kong, approval from HKEX, and the Philippine Competition Commission’s review of the conversion.
In its statements, IEC reiterated that New Coast holds a provisional PAGCOR license and has committed at least US$1 billion to overhaul the property into a fully integrated resort. The complex currently includes 203 guest rooms, 96 gaming tables, 495 slot machines, and additional gaming amenities. Renovations are underway, with the casino expected to reach completion in January 2026 and the hotel by the third quarter of the same year.
DigiPlus’ Long-Term Vision for an Integrated Ecosystem
DigiPlus Chairman Eusebio Tanco underscored the strategic significance of the move, stating, “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.” He added, “Through this transaction, we are expanding our omnipresent ecosystem – bridging digital innovation with real-world experiences – to create a new era of entertainment that is engaging, responsible, and globally competitive.”
The company reiterated that acquiring an offline platform of this scale aligns with long-term plans to offer entertainment experiences that blend technology, convenience, and cultural relevance. By integrating IEC’s established hospitality operations with its digital network, DigiPlus aims to elevate customer engagement, enhance brand visibility, and strengthen its foothold in both physical and online markets.
