Philippine listed construction company EEI (Engineering Equipment, Inc.) acquired First Orient International Ventures Corp. for 2.8 billion pesos in cash, taking over the Island Cove resort island in Cavite, which was once a stronghold for POGO operations. The island was transformed into a POGO park, known as "Cavite's Macau," but was later listed on the "grey list" by the government due to illegal activities such as money laundering and kidnapping. After the POGO withdrawal in 2024, First Orient suffered a loss of 470 million pesos. EEI stated that this acquisition is a strategic transformation towards integrated real estate, but analysts point out that the target company has debts of up to 11.4 billion pesos, and the transaction may involve capital laundering and political-economic restructuring. The acquisition coincides with the Philippine Congress passing the "Anti-POGO Law" and confiscating gambling assets, with the reconstruction of Island Cove seen as a symbol of the end of the gambling era and the establishment of a new order.
Transaction Overview and Acquisition Details
Philippine listed construction company EEI acquired First Orient International Ventures Corp. for 2.8 billion pesos in cash, gaining ownership of the Island Cove resort island. EEI stated that this transaction is a strategic move from construction contracting to integrated real estate.
First Orient has debts of up to 11.4 billion pesos, and EEI acquired controlling interest at a lower cost, sparking market discussions about the essence of the transaction.
Island Cove History and POGO Background
Island Cove was a well-known resort island in Cavite, operated by the Remulla family for many years, later acquired by First Orient and transformed into a POGO park. The park was known as "Cavite's Macau," famous for its gambling operations, but also involved in money laundering, kidnapping, cryptocurrency exchanges, and illegal detention.
The POGO withdrawal storm in 2024 led to a loss of 470 million pesos for First Orient, leaving the park deserted and listed on the regulatory grey list.
Transaction Analysis and Capital Interpretation
EEI claims the acquisition is part of a strategic transformation, but financial data shows the target company has debts of 11.4 billion pesos, with the 2.8 billion peso purchase price considered far below the actual debt scale by analysts. A financial advisor said, "This is not an investment, it's capital laundering."
The timing of the transaction coincides with the advancement of the Sangley International Airport project nearby, involving the Yuchengco group and multiple capitals, seen as a capital takeover paving the way for new city development.
Current Situation and Remaining Issues
Although POGO has withdrawn, private armed guards still watch over the old dormitory area on the island, with nighttime light activities. Reports indicate that a large amount of POGO equipment, servers, and accounts were secretly transferred before the withdrawal, with locals referring to the area as "the sleeping POGO."
This phenomenon indicates that although the gambling economy has ended, related forces and infrastructure have not completely disappeared.
Policy Background and Legal Environment
The Philippine Congress has passed the "Anti-POGO Law," authorizing the government to confiscate all gambling assets. As a former POGO stronghold, Island Cove serves as a government example to demonstrate regulatory determination while warning consortia.
Policy changes reflect the government's intolerance of the gambling shadow, demanding full compliance from the industry.
Social Impact and Economic Cost
Island Cove once employed thousands of workers, with the POGO withdrawal leading to business closures, unemployment, and school shutdowns. The short-term gambling boom brought long-term social and economic costs, with the local community paying a heavy price for the POGO era.
EEI's reconstruction plans face the challenge of avoiding historical cycles, ensuring development is sustainable and socially beneficial.
Capital Role and Stakeholder Involvement
One view is that EEI is the executor of a "island cleansing operation" led jointly by the state and consortia, aiming to rewrite history with a clean capital story covering the POGO stains. Another view questions whether EEI, as a "white glove," still has funds from the original gambling forces, continuing to layout under the guise of new city investments.
The transaction may involve a redistribution of multiple political and economic interests.
Future Prospects and Potential Impact
The reconstruction of Island Cove is seen as a litmus test for the post-POGO era development in the Philippines. Whether the project succeeds will test if capital can truly drive transformation or merely continue old patterns in new forms.
The project outcome will serve as a reference for the transformation of other former POGO areas in the Philippines.
Regional Development and Strategic Location
Island Cove is strategically located near the Sangley International Airport project. The airport development is expected to drive regional economy and increase land value, which is also a significant consideration for EEI's acquisition.
Regional development plans may bring new industry opportunities such as tourism and logistics to Island Cove.
Regulatory Challenges and Ongoing Attention
Philippine regulatory agencies continue to monitor activities in former POGO areas to prevent illegal gambling from resurfacing in different forms. As a landmark project, the development of Island Cove will be under strict supervision.
EEI needs to ensure operations are fully compliant, avoiding association with gambling legacy issues.
