Philippine online gambling giant DigiPlus recently made a big move by subscribing to bonds to acquire controlling interest in the New Coast Hotel Casino in Manila. This transaction involves HK$1.6 billion and upon completion, it will hold more than half of the shares of International Entertainment Corporation, marking the online gambling giant's official entry into the physical casino market.
Investment Layout and Intentions Behind DigiPlus
DigiPlus's subscription of HK$1.6 billion in bonds from International Entertainment Corporation will convert into a 53.89% controlling stake. The company, controlled by Eusebio Tanco, owns well-known online platforms such as BingoPlus and ArenaPlus. Its sudden shift to physical casinos is clearly intended to diversify away from the policy risks of purely online operations and to make a foray into the integrated resort market.
Transaction Details and Potential Follow-up Actions
According to the announcement, the bond conversion may trigger a mandatory takeover obligation, but DigiPlus plans to apply for a "white knight exemption." If the exemption is not granted, they will have to decide whether to continue subscribing. Honestly, such maneuvers are quite common in the capital market; the key is whether regulatory approval is granted.
IEC's Resort Upgrade Plan and Use of Funds
The New Coast Hotel is being upgraded to an integrated resort, with a total investment expected to be at least $1 billion. After the renovation, the area will expand to 250,000 square meters, including 800 luxury rooms and 20,000 square meters of commercial facilities. About HK$716 million of the funds raised will be used for the hotel upgrade, with the remainder used to repay debts, clearly aiming to enhance competitiveness.
Market Structure and Industry Impact Analysis
DigiPlus's crossover has spiced up the Philippine casino market. The competition between online giants and traditional physical casinos is likely to accelerate industry consolidation. After all, Manila's gambling market has been quite stable, but now with a new challenger entering, the future developments are worth watching.
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