DigiPlus completes 2nd tranche of IEC note deal

DIGIPLUS Interactive Corp. has completed the second tranche of its subscription to convertible notes issued by International Entertainment Corp. (IEC), finalizing the transaction after all conditions under the agreement were satisfied.

In a stock exchange filing on Thursday, DigiPlus said IEC confirmed that all conditions precedent for the second tranche had been met, allowing the deal to close on June 3.

The completion follows the first tranche, which closed on March 3 and involved HK$800 million (P6.3 billion) of convertible notes issued to DigiPlus.

The investment forms part of a broader HK$1.6-billion agreement signed last year, under which DigiPlus committed to subscribe to IEC-issued convertible notes in two tranches.

Under the deal, DigiPlus has the option to convert the notes into equity, which could give it about 53.89% of IEC’s issued capital stock based on an initial conversion price of HK$1 per share. The notes carry a 3% annual interest rate and are redeemable at 108% of principal after five years if not converted.

IEC owns and operates New Coast Hotel Manila, an integrated hotel and casino complex formerly known as New World Hotel Manila. The property includes gaming tables, slot machines and other gaming facilities.

DigiPlus earlier said it expected to complete the final tranche by end-May or early June, with former President Andy Tsui noting in March that payment timelines were aligned with the agreement structure.

The transaction expands DigiPlus’ exposure to IEC and strengthens its position in the leisure and gaming operator, while retaining the option to convert the notes into equity in the coming years.

As of November 2025, New Coast Hotel Manila operated 96 gaming tables and 495 slot machines.

DigiPlus shares fell 0.75% to P10.62 each on the Philippine Stock Exchange. — Alexandria Grace C. Magno