Hong Kong-listed International Entertainment Corp (IEC) said Tuesday it had completed the issue of a first tranche of Subscription Notes in the amount of HK$800 million (US$102.5 million) to DigiPlus Interactive Corp, with the second and final tranche of an equal amount expected to be issued within three months.
The notes form part of a Subscription agreement inked between the two companies in November for DigiPlus to assume a controlling stake in IEC and its primary asset – the recently rebranded LaVie Resort & Casino, home of New Coast Hotel Manila. Upon issue of the entire HK$1.6 billion (US$205 million) in Subscription Notes and full conversion, DigiPlus will hold a 53.89% stake in IEC.
DigiPlus stated previously that by assuming an interest in a land-based casino-resort, it would “strengthen DigiPlus’ omnipresent entertainment ecosystem by adding a strategic offline platform that seamlessly connects with its digital network, enhancing brand activation, player engagement, and customer experience across both physical and online touchpoints.”
IEC shareholders last week approved the transaction as well as a whitewash waiver that exempts DigiPlus from Hong Kong listing rules that would require it to make a mandatory general offer for all general shares it does not already own.
IEC explained in Tuesday’s filing that, after deducting relevant costs and expenses of approximately HK$2 million, the net proceeds raised under the first completion of notes and to be raised under the second completion are estimated to be approximately HK$1.598 billion.
IEC is in the process of transforming its New Coast Hotel Manila hotel and casino into a fully-fledged integrated resort as per a provisional license issued by PAGCOR in 2023. The company has pledged to spend at least US$1 billion to do so, having last year taken over full operational control of its previously PAGCOR-run casino from the regulator.
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