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Mahindra and Mahindra Ltd confirmed an all in cash deal investment plans of C$6.63 million ($5.17 million) for a 10% stake in Canadian technology firm Resson Aerospace Corp.
M&M will acquire up to 800,402 Class C preferred shares of Resson Aerospace, which translates into 10% of the company’s share capital on a fully diluted basis, it said in a stock exchange filing.
The transaction is expected to be complete by 10 May 2018. No government or regulatory approvals are required for the deal, the company said.
The deal is expected to assist the Indian conglomerate develop and strengthen its technology solutions for its farm division. M&M is the world’s largest selling tractor brand by volume.
Incorporated in May 2013, Resson focuses on providing technology solutions for agriculture. It has developed a system that captures and interprets images to give farmers information on the state of the field and crop health. It primarily operates in Canada and the US.
The multi-billion Mahindra Group deals in automobiles, two-wheelers, farm equipment, defence, energy, financial services, real estate and retail. In the past three years, it has acquired at least four businesses across the automobiles and farm equipment sectors.
