Kenya’s Mobius Motors Secures Buyer Following Closure Announcement

Just a week after Mobius Motors, a Kenya-based automaker supported by Playfair Capital, announced its decision to shut down, the company has now accepted an acquisition offer from an undisclosed buyer. This development marks a significant turn of events for the car manufacturer, which had been struggling to stay afloat.

According to Nicolas Guibert, a director at Mobius, the company accepted the bid for 100% of its shares on August 14, and both parties are aiming to finalize the transaction within 30 days. “On August 14, Mobius accepted a bid for the acquisition of 100% of its shares by an undisclosed buyer. Both parties are looking to close the transaction within 30 days,” Guibert noted in an official notice.

As a result of the acquisition offer, Mobius has decided to postpone a previously scheduled meeting with its creditors, which was set for Thursday. This delay is intended to provide time for the ongoing acquisition negotiations to proceed smoothly.

Speculation is rife about the intentions of the interested buyer. Industry insiders suggest that the buyer might either utilize Mobius’s state-of-the-art assembly plant in Nairobi to produce their own vehicle models or continue manufacturing the Mobius cars. The brand has been specifically targeting small and medium-sized enterprises (SMEs) involved in infrastructure, agribusiness, and supply chain operations in remote areas.

This potential rescue plan follows a report by Business Daily on August 9, which indicated that two dealers were exploring the possibility of acquiring the financially troubled car manufacturer. This interest came after Hassan Abubakar, the Permanent Secretary for Trade and Industry, along with representatives from the Kenya Association of Manufacturers (KAM), visited Mobius’s production facility to discuss potential solutions for saving the brand.

Mobius Motors is renowned for its expansive production facility, which is equipped with capabilities for vehicle frame fabrication, anti-corrosion treatment, general assembly, painting, quality testing, and final inspection. The facility also includes a dedicated research and development unit, further showcasing the company’s commitment to innovation and quality.

The automaker has a distributorship agreement with Chinese manufacturer BAIC, which played a crucial role in launching the Mobius III, an advanced iteration of its earlier models, Mobius I and Mobius II. Mobius was founded in 2009 by British national Joel Jackson while he was working in Kenya. The company made headlines in 2014 when it introduced a no-frills SUV model “built for African roads,” priced at a competitive $10,000 (KES 1.3 million). The latest Mobius III model was retailing for $43,000, offering a more affordable alternative to imported and locally assembled SUVs like the Toyota Land Cruiser Prado, Land Rover Defender, and Jeep Wrangler, which typically cost upwards of $65,000.

The acquisition of Mobius Motors, if successful, could revive the brand and possibly sustain its vision of providing robust, affordable vehicles tailored for the African market.

Source: techcabal