Several major shareholders at DigiPlus Interactive have expressed dissatisfaction through a letter to the board, demanding an urgent share buyback to enhance shareholder value. The letter, penned by Betplay Capital Foundation, ZJ Foundation, and MJ Foundation—together holding about 1.4% of the shares—calls for the company to prioritize its investors’ interests.
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Concerns Over DigiPlus’ Market Evaluation
The investors, closely connected to the Juroszek family known for their large involvement in the gambling sector, argue DigiPlus is undervalued. With shares priced at roughly $0.18, they estimate its true value to be closer to $0.50. According to Tomasz Juroszek, who signed the letter, despite the company’s strong performance in the Philippines’ booming gambling market and having no debt, its current valuation is alarmingly low. But digiPlus has been considering using its cash reserves for land-based expansion, yet Juroszek stresses that share buybacks should take precedence. He believes that reducing available shares now would yield long-term benefits for the company, suggesting that focusing on shareholder returns is paramount.
Potential Land-Based Expansion in Manila
While Juroszek pushes for buybacks, DigiPlus has its eyes set on entering the land-based casino market, potentially through acquiring City of Dreams, Manila. Still, this acquisition would enhance DigiPlus’ presence, offering synergies between digital and brick-and-mortar operations. City of Dreams is a top-performing casino in the Philippines, and acquiring it could increase DigiPlus’ brand recognition and improve its live-streaming offerings—a strategic move for a market that’s increasingly competitive. Nevertheless, Juroszek’s push for buybacks could disrupt these growth plans. The decision between pursuing buybacks or expansion is looming large over the company’s future direction.
Awaiting DigiPlus’ Strategic Decision
Currently, DigiPlus hasn’t made a public commitment regarding its strategy. Its previous share purchase authorization has expired, leaving the company’s next steps open to speculation. Juroszek’s letter seeks to reinstate and amplify the buyback program, aiming to steer DigiPlus towards enhancing shareholder returns. Whether DigiPlus will heed these investor calls for buybacks or pivot towards its expansion ambitions is yet to be seen. The decision, undoubtedly, will shape its path forward. And the board is expected to deliberate on these strategic options in the coming months.
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