Asia Capital Managing Director Raju Radha

Asia Capital PLC Managing Director Raju Radha described the receipt of Rs. 783 million via the sale of minority stakes in three Group companies was a “long-awaited triumph” for the company.

Asia Capital PLC achieved 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 Rs.  783 million.

According to a stock exchange filing, the company sold its 10% stake in each of the following entities: Galle Heritage Lanka Ltd., Marine Drive Hotels Ltd., and Miriandhoo Maldives Resort Ltd. The execution of the agreement for the transaction was completed on 25 February.

Asia Capital sought arbitration over unpaid fees and penalties, including a $ 3 million tax penalty resulting from the non-capitalisation of investments.

“This agreement marks a long-awaited triumph for Asia Capital, which has been unfairly treated throughout this process,” Radha said, welcoming the settlement. “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,” he added.

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.