BackMahindra & Mahindra's Canada-based associate Resson Aerospace files for a voluntary wind-up; shares down by 2.2%
Mahindra & Mahindra company’s associate Resson Aerospace, Canada has filed for a voluntary winding-up, company said in its BSE filing on Thursday
PremiumMahindra and Mahindra company's Canada-based associate Resson Aerosace is planning to wind-up its investment in the Indian automaker.
The company filed for a voluntary winding-up, said M&M in its stock exchange filing on Thursday. M&M holds 11.18% stake on a diluted basis through Class C preferred shares in Resson Aerospace.
After the announcement, company shares fell in the stock market. The company shares were trading 2.22% lower at ₹1597.80 per share on BSE at 11:30 am.
“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," said M&M in its stock exchange filing on Thursday.
Post liquidation, the company will receive around approximately 4.7 million Canadian Dollars, equivalent to ₹28.7 crore, as distribution of proceeds towards Class C Preferred Shares held by the Company.
M&M signed an agreement with Resson Aerospace firm in 2018 to acquire up to 10 per cent share capital of the Canadian IT firm for up to 6.63 million to be paid in cash.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.
