International Entertainment Corporation (IEC) said it has fully repaid and redeemed all outstanding promissory notes and settled its secured bank borrowing, marking a significant step in its broader transaction with DigiPlus Interactive Corp.
In a voluntary business update filed with the Hong Kong Stock Exchange, the company said the repayments were funded in part by net proceeds of approximately HK$489.22m from the first tranche of its convertible notes subscription, which was allocated to the promissory note repayment, and about HK$392.39m used to repay secured bank borrowings.
The repayment forms part of a HK$1.6bn convertible notes deal that could result in DigiPlus becoming the controlling shareholder of IEC. The subscription was approved by shareholders at an extraordinary general meeting on February 26, 2026, with all resolutions passed unanimously among votes cast.
These included approval of the subscription agreement, a specific mandate to issue conversion shares, a special deal relating to early repayment of promissory notes and a whitewash waiver under Hong Kong’s Takeovers Code.
The whitewash waiver, granted by the Securities and Futures Commission, removes DigiPlus’s obligation to make a mandatory general offer if the notes are converted. Upon full conversion at an initial price of HK$1.00 per share, DigiPlus would hold approximately 53.89% of IEC’s enlarged share capital. Total issued shares would increase from 1.37bn to 2.97bn.
The notes are being issued in two tranches of HK$800m each, with the second tranche expected to close within three months of the first.
IEC owns and operates the five star New Coast Hotel Manila, an integrated hotel and casino complex licensed by PAGCOR. The company said its independent financial adviser continues to view the transaction as fair and reasonable following the release of interim results, which showed strong growth in Manila gaming operations.
IEC reported revenue of HK$458.9m for the six months ended December 31, 2025, up 71.5% year over year
