Torre Industries, an industrial holding company whose main activity is the distribution of branded capital equipment and other products, has sold its 55% stake in Kanu Equipment. "The transaction will result in the elimination of Torre’s external debt and provide a significant net cash position once all proceeds have been received," Torre said on Tuesday. Kanu will be majority owned by the African Agriculture Fund (AAF), a specialist investor focused on the African markets in which Kanu operates. Kanu supplies earthmoving, forestry, agricultural and construction equipment across southern, central and west Africa. The sale to AAF, a private equity fund managed by Phatisa Fund Managers and Kanthu Nkhama Capital, will also see the parties take up shareholder loan claims against Kanu in a deal valued at $26.7m. Kanu, a private company incorporated in Mauritius, is held 55% by Torre, 40% by AAF and 5% by a management consortium.
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