DigiPlus weighs buying RSA's Diamond Hotel to expand casino business
Ramon S. Ang and Eusebio Tanco
Leading online gaming firm DigiPlus Interactive Corp. is weighing an expansion of its physical casino footprint through the potential acquisition of the Manila Diamond Hotel from billionaire Ramon S. Ang.
In a disclosure to the Philippine Stock Exchange, DigiPlus confirmed InsiderPH’s report that it is evaluating the purchase of the Roxas Boulevard property, which is adjacent to the New Coast Hotel Manila, an integrated resort it is already in the process of acquiring.
DigiPlus said it is “exploring opportunities to expand into adjacent and complementary segments, aligned with its long-term strategy to develop a robust gaming and digital entertainment ecosystem.” While the company admitted its interest in the Diamond Hotel, it cautioned that “these plans remain under evaluation, and no definitive transactions have been made.”
Ang, the tycoon at the helm of San Miguel Corp., declined to comment on the potential sale.
The planned expansion into physical real estate follows comments from DigiPlus President Andy Tsui, who outlined a vision last March to transform the company into an “omni-channel” powerhouse. By integrating onsite operations with its digital interface, DigiPlus aims to boost user retention and increase the average spend per player.
Tsui noted that providing a “one-stop-shop” for both digital and physical gaming is a strategy that has proven successful in other international jurisdictions.
The timeline for these ambitions hinges on the completion of the New Coast Hotel transaction. DigiPlus expects to finalize a ₱6 billion payment for convertible notes to International Entertainment Corp. (IEC) by early June.
This follows an agreement inked last November to subscribe to ₱12 billion in convertible notes, a deal that will eventually grant DigiPlus a controlling 54 percent stake in the Hong Kong-listed hotel owner.
But regulatory hurdles remain the primary bottleneck. Tsui indicated that any expansion or consolidation of the hotel assets must undergo a review by the Philippine Competition Commission. Given that the antitrust body’s evaluation typically spans six to nine months, DigiPlus does not expect to consolidate these land-based operations anytime soon.
The company has already cleared a significant international hurdle, securing a whitewash waiver from Hong Kong’s Securities and Futures Commission, which allows it to take control of IEC without triggering a mandatory general offer to minority shareholders. (James A. Loyola)