- Mobius Motors, a Kenyan automotive company, has agreed to an acquisition offer from an unnamed buyer just a week after revealing plans to shut down operations
- In an announcement, Mobius Motors’ director Nicolas Guibert disclosed that on August 14, the company accepted an offer for a full 100% acquisition
- The deal is set to be finalised within the next 30 days
Kenya – Mobius Motors, a Kenyan automaker, has faced several financial challenges that led to the company initiating a voluntary liquidation process under the Insolvency Act.
The move, driven by accumulating unpaid debts to suppliers and outstanding salaries, was confirmed following a shareholder’s meeting on August 5, 2024.
Join over 10k partners and investors in Africa in our weekly emailing subscription list
Creditors were notified that lists of debts and proxy forms would be accessible for review at the company’s headquarters.
The Kenyan automaker, established in 2009 by British entrepreneur Joel Jackson, became known for its rugged SUV, designed specifically for the African market and launched in 2014.
Over the years, the company secured US$56 million in funding through five rounds, with UK-based Playfair Capital being the main investor.
Despite the grim outlook, there is a glimmer of hope for the company. Shortly after the liquidation announcement, reports emerged indicating that at least two competing car dealers were interested in acquiring Mobius and possibly saving the brand.
Furthermore, Hassan Abubakar, the Permanent Secretary for Trade and Industry, along with representatives from the Kenya Association of Manufacturers (KAM), reportedly visited the company’s plant to explore potential solutions for keeping the company operational.
Due to the ongoing acquisition talks, the company postponed a creditors’ meeting that was originally scheduled for August 15 at its Nairobi factory.
The meeting was intended to approve KVSK Sastry as the liquidator to oversee the company’s liquidation process.
This delay will allow for the completion of the acquisition discussion.
Also read: Mobius Motors: Kenyan Vehicle Manufacturer Is Closing Down
Subscribe to our weekly newsletter and get industry reports and deals happening in Africa.