Asia Capital settles three-year dispute with Japanese multinational Belluna

• Receives Rs. 783 million from Belluna
• Disposes minority share interests in Galle Heritage Lanka, Marine Drive Hotels and Miriandhoo Maldives Resorts

Asia Capital PLC (ACAP) has reached a settlement with Japanese multinational Belluna Co. Ltd., resolving a three-year dispute, resulting in Asia Capital receiving Rs. 783 million, a company statement said. 
According to a filing with the stock exchange, the agreement includes Asia Capital’s disposal of its minority share interests in three companies.  Asia Capital sold its 10 percent stake in each of the following entities: Galle Heritage Lanka (Private) Limited, Marine Drive Hotels (Private) Limited, and Miriandhoo Maldives Resorts (Private) Limited.  The agreement was finalised on February 25.    
The dispute between the companies involved arbitration sought by Asia Capital over unpaid fees and penalties, including a US$3 million tax penalty.    
Asia Capital PLC Managing Director Raju Radha expressed his satisfaction with the settlement.  
“This agreement marks a long-awaited triumph for Asia Capital, which has been unfairly treated throughout this process,” he stated.  He further added, “The settlement not only validates our claims but also restores equity for our minority shareholders.”
From approximately 2018 to 2019, Asia Capital PLC encountered increasing financial difficulties, including a downturn in revenues, a surge in debt, and tightening liquidity. These problems intensified, and by 2024, the company’s liabilities were greater than its assets, resulting in a financially distressed designation. Still, the company has shown signs of recovery.
Radha stated that the settlement proceeds would significantly aid in strengthening the company’s balance sheet and reinforcing its financial standing and growth. He added, “Asia Capital remains optimistic about moving forward with strengthened resolve, reaffirming its commitment to stakeholders and shareholders.”
President’s Counsel Harsha Amarasekera represented Belluna Co. Ltd. in the settlement, while Sarravanan Neelakandan Law Associates served as legal counsel for Asia Capital PLC.    
Established in the early 1990s, Asia Capital PLC has expanded from its beginnings as a securities trading company to become a player in investment banking.  The company’s diversified portfolio includes leisure, project management, corporate finance, advisory services, property management, real estate, asset management, and information technology services.