Leading gaming technology firm DigiPlus Interactive Corp has not denied a report by local Philippines media that it is a leading contender to purchase Melco Resorts & Entertainment’s stake in City of Dreams Manila.
Bilyonaryo reported late last week that DigiPlus has emerged as the “most likely buyer” of City of Dreams Manila, which Melco revealed in February was up for sale as part of a newly implemented “asset light” strategy”.
Melco later stated in May that it was working with potential buyers on a bidding process and that a short list was being formed.
According to the Bilyonaryo report, DigiPlus has been “negotiating with Melco over the past few months to take over as operator of the integrated resort, which is 50% owned by Belle Corp of the Sy family.” It explained that this was because the company was looking to diversify amid a recent regulatory crackdown in the online gambling space where DigiPlus is a leading participant.
In response to inquiries from the Philippines Stock Exchange, DigiPlus confirmed only that it “continues to evaluate potential acquisitions that may complement its existing digital assets as part of its strategic expansion program. However, no definitive agreements or plans have been finalized at this time.”
Although the Philippines-land based has faced challenges this year due to a decline in visitation from the country’s core South Korean and Chinese tourist markets, acquisition of City of Dreams Manila would not only diversify DigiPlus’s assets but also provide an opportunity to expand its remote gaming offerings due to holding a significantly expanded land-based footprint from which to stream.
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