Mahindra and Mahindra's (M&M) Canadian associate, Resson Aerospace, have announced plans to wind up operations, the automaker informed in an exchange filing on Thursday. According to M&M's filing, Resson Aerospace has initiated voluntary winding-up procedures. M&M currently holds an 11.18 per cent stake, on a diluted basis, through Class C preferred shares in Resson Aerospace.
“Resson has received a Certificate of Dissolution from Corporations Canada dated September 20 2023, which was informed to the Company on September 20 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 September 20, 2023," said M&M.
As a result of Resson's liquidation, Mahindra & Mahindra is entitled to receive approximately 4.7 million Canadian Dollars (equivalent to Rs 28.7 crore) as the distribution of proceeds for its Class C Preferred Shares held by the company.
Following this announcement, multiple reports noted that the company's shares experienced a decline in the stock market. On Friday, at 11 am, the stocks of Mahindra and Manindra were trading in over 1 per cent gains at Rs 1,604 per share.
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The timing of the development has spurred speculation on social media, though the exact reason remains unclear. Resson Aerospace Corporation is winding up operations against the backdrop of escalating diplomatic tensions between India and Canada.
On Thursday, Canadian Prime Minister Justin Trudeau reiterated his allegation that "Indian government agents" were involved in the June killing of Hardeep Singh Nijjar, a Canadian citizen wanted by Indian authorities. Trudeau stated that there are "credible reasons to believe" this, although no evidence was provided.