DigiPlus Interactive Corp. said it will primarily use internally generated funds to finance the P12-billion acquisition of New Coast Hotel Manila, an integrated hotel and casino complex in Malate, Manila.
DigiPlus president Andy Tsui said the company has more than P19 billion in cash balance that could be used to fund the acquisition. It may also explore bank financing for the transaction.
“So we do expect that we have sufficient internal funds, but if we need it, we can also explore some short-term financing,” Tsui said.
DigiPlus announced Tuesday that it signed a HK$1.6-billion (about P12 billion) convertible notes agreement with Hong Kong-listed International Entertainment Corp. (IEC).
Tsui said DigiPlus expects to complete the arrangement with IEC within eight to nine weeks, pending approval by IEC shareholders. The first payment is expected in early January and the second in April, he said.
The subscription involves the issuance of convertible notes in two tranches. The first tranche, valued at HK$800 million, will be completed after customary conditions are met, and the second tranche, also HK$800 million, will follow within three months of the first, subject to mutually agreed terms.
New Coast Hotel Manila, previously New World Hotel Manila, is a five-star property located along Roxas Boulevard. It features 203 guest rooms, 96 gaming tables, 495 slot machines and other gaming amenities. The complex is currently undergoing renovation, with the casino expected to be completed in January 2026 and the hotel by the third quarter of 2026.
Tsui said the acquisition will strengthen DigiPlus’ foothold in the Philippine mass-market gaming segment. He said the company opted to acquire New Coast Hotel Manila because of its strategic location and lower cost of acquisition.
“We see the competition in the entertainment city is getting very intense, and the growth rate is kind of declining as well,” Tsui said. “So we think that if we position ourselves in like the Malate area, we could achieve much stronger growth because there’s only one casino or integrated resort in that area.”
“We decided to go with IEC because we will have a chance to own the majority ownership, around 53.9 percent,” he added.
