Japanese investors agrees to Rs. 783 Mn settlement after Three-Year dispute
Asia Capital PLC was vindicated through a significant breakthrough in its prolonged dispute with Belluna Co. Ltd., a Japanese multinational. As part of the agreement, Asia Capital has also disposed of its minority share interests in the three companies, receiving a total consideration of LKR 783 million. According to a stock exchange filing, the company sold its 10% stake in each of the following entities, Galle Heritage Lanka (Private) Limited, Marine Drive Hotels (Private) Limited, and Miriandhoo Maldives Resorts (Private) Limited. The execution of the agreement for the transaction was completed on February 25.
Asia Capital sought arbitration over unpaid fees and penalties, including a US$3 million tax penalty resulting from the non-capitalization of investments.
Asia Capital PLC Managing Director, Raju Radha, welcomed the settlement, stating, “I was surprised to see this case was not directed to the commercial courts. This agreement marks a long-awaited triumph for Asia Capital, which has been unfairly treated throughout this process. The settlement not only validates our claims but also restores equity for our minority shareholders. Furthermore, the proceeds from this settlement will significantly contribute to strengthening our balance sheet, reinforcing the company’s financial position and growth trajectory. Asia Capital remains optimistic about moving forward with strengthened resolve, reaffirming its commitment to stakeholders and shareholders.”
Representing Belluna Co. Ltd. in the settlement process was President’s Counsel Harsha Amarasekera, while Sarravanan Neelakandan Law Associates served as legal counsel for Asia Capital PLC.
