Hong Kong-listed International Entertainment Corp – currently redeveloping the New Coast Hotel Manila in the Philippine capital as an integrated resort with gaming – said it expected its pledged investment on the project to be completed “by 2033”.
A Monday filing gave updates on the involvement of Philippines-listed and licensed online gaming operator DigiPlus Interactive Corp and the latter’s efforts to acquire a majority stake in International Entertainment.
International Entertainment took over casino operations at the New Coast Hotel Manila (pictured in a file photo) in May 2024. That was under a provisional gaming licence granted by the country’s gaming regulator, the Philippine Amusement and Gaming Corp (Pagcor).
Under that licence – expiring on July 11, 2033 – International Entertainment is required to invest “no less than US$1.0 billion and up to US$1.2 billion” for the revamp of New Coast Hotel Manila as an integrated resort.
DigiPlus is subscribing to International Entertainment convertible notes worth up to HKD1.60 billion (US$205.8 million), in two tranches. Once fully converted, the notes would give DigiPlus a 53.89-percent stake in International Entertainment based on the enlarged share capital.
The subscription deal is subject to the approval by International Entertainment’s shareholders at an extraordinary general meeting due on February 26.
The net proceeds from DigiPlus’s subscription would provide “immediate capital” to part-finance International Entertainment’s investment commitment for the Manila venue “for at least the next two years”, said International Entertainment in its Monday filing.
Completion of DigiPlus’s subcription in the convertible notes would raise an aggregate amount of HKD1.60 billion, with the net proceeds anticipated to be HKD1.598 billion, the Hong Kong filing stated.
Around 34.82 percent of net proceeds – or HKD556.39 million – would be for, respectively, funding the New Coast Hotel Manila redevelopment over “at least the next two years”, and for any “attractive investment/business opportunity(ies) that may arise from time to time,” stated International Entertainment in the Monday filing.
It said the latter included opportunities related to the “hotel and gaming sector in the Philippines and/or overseas”.
The rest of the net proceeds from DigiPlus’s subcription to the convertible notes would go towards International Entertainment’s repayment of promissory notes and bank borrowings, as well as for its general working capital.
