Resson Aerospace, an associate of Mahindra & Mahindra (M&M) based in Canada, has initiated the process of winding up its investment in the Indian automaker. This development was disclosed in M&M’s stock exchange filing on Thursday. M&M currently holds an 11.18% stake on a diluted basis through Class C preferred shares in Resson Aerospace.
Following the announcement of this decision, M&M’s shares experienced a decline in the stock market. At 11:30 am, the company’s shares were trading 2.22% lower at ₹1597.80 per share on the Bombay Stock Exchange (BSE).
According to M&M’s stock exchange filing, “Resson has received a Certificate of Dissolution from Corporations Canada dated 20th September 2023, which was informed to the Company on 20th September 2023 at 8.19 p.m. Consequent to the above, Resson has ceased to be in existence and has also ceased to be an Associate of the Company under the Indian Accounting Standards (IndAS) with effect from 20th September 2023.”
Upon the completion of the liquidation process, the company will receive approximately 4.7 million Canadian Dollars, equivalent to ₹28.7 crore, as the distribution of proceeds related to the Class C Preferred Shares held by M&M.
In 2018, Mahindra & Mahindra entered into an agreement with Resson Aerospace to acquire up to 10% of the share capital of the Canadian IT firm for an amount of up to 6.63 million to be paid in cash.
