DigiPlus Moves Toward IEC Majority Stake
Shareholders of Hong Kong-listed International Entertainment Corporation (IEC) have approved a transaction that could pave the way for Philippine gaming technology group DigiPlus to become the company’s majority owner.
At an extraordinary general meeting held on February 26, 2026, investors endorsed the issuance of HK$1.6 billion (around $204.6 million) in convertible notes to DigiPlus, alongside a waiver related to Hong Kong takeover regulations.
Convertible Notes and Whitewash Waiver
Under the existing subscription agreement, DigiPlus will subscribe to the HK$1.6 billion convertible notes. If fully converted at the initial conversion price, DigiPlus would hold approximately 53.89% of IEC’s enlarged share capital effectively securing control of the company.
Ordinarily, surpassing the 30% control threshold under Hong Kong’s Takeovers Code would require DigiPlus to launch a mandatory general offer for all remaining shares. To prevent this obligation, IEC applied for a Whitewash Waiver from the Executive arm of the Securities and Futures Commission.
Independent shareholders voted in favor of the waiver by more than the required 75%, satisfying regulatory conditions. The Executive also approved a Special Deal that allows part of the subscription proceeds to be used for the early repayment of promissory notes.
Financing the Manila Integrated Resort
IEC has earmarked the proceeds from the subscription to advance its plans for transforming New Coast Hotel Manila into a fully integrated resort. The property operates under a provisional license granted by PAGCOR in 2023.
The company has outlined total investment plans of between $1 billion and $1.2 billion for the redevelopment project. In 2024, IEC assumed full operational control of the casino from PAGCOR and now directly manages the gaming operations. Funds from the convertible notes will support further renovation of the casino and other resort facilities as part of the broader redevelopment strategy.
Next Steps and Timeline
IEC confirmed that the principal conditions required for the first stage of completion including shareholder approval and the granting of the Whitewash Waiver have now been satisfied. This clears a significant procedural hurdle for DigiPlus to move toward majority ownership once the notes are issued and subsequently converted.
Alongside the financing update, IEC reported progress at its Manila property. Renovation works on the casino’s ground floor were completed in January, and the company is targeting a grand reopening of New Coast Hotel Manila in July this year. The reopening is expected to mark the next milestone in aligning the project’s funding, regulatory framework and redevelopment plans.
