Mahindra Aerospace Australia to exit aircraft manufacturing business: Mahindra & Mahindra

Mahindra and Mahindra Ltd. announced today that its subsidiary, Mahindra Aerospace Australia Pty Limited (MAAPL), is set to exit the aircraft manufacturing business. In an official statement, the company revealed that MAAPL has executed a Share Purchase Agreement (SPA) with George Morgan for the complete divestment of its stake in several units, including Gipps Aero Pty Ltd, GA8 Airvan Pty Ltd, GA200 Pty Ltd, Nomad TC Pty Ltd, Airvan 10 Pty Ltd, and Airvan Flight Services Pty Ltd.

This strategic move is part of MAAPL's capital allocation process, indicating a shift in the company's focus away from aircraft manufacturing. Upon the completion of the stake sale, MAAPL's shareholding in the mentioned subsidiaries will be reduced to zero, and these subsidiaries will cease to be under the umbrella of MAAPL, as well as that of Mahindra Aerospace Private Limited and Mahindra and Mahindra Ltd.

The buyer, George Morgan, is a director on the board of MAAPL Subsidiaries, and the transaction is not considered a Related Party Transaction for MAAPL or Mahindra Aerospace Private Limited. The move is categorised as an arms' length transaction and aligns with the extended definition of Related Party Transaction under Regulation 2(1)(zc) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for Mahindra and Mahindra Ltd.

The shares of Mahindra and Mahindra were down 0.44 per cent lower at Rs 1486.35 apiece on Wednesday, November 8, early trade.