Buyer steps in for Kenya’s Mobius Motors following shutdown notice

Just a week after Mobius Motors, the Kenyan automaker with financial backing from Playfair Capital, announced its closure, the company has received a lifeline in the form of an acquisition proposal from an as-yet-unnamed buyer. Nicolas Guibert, a director at Mobius, issued a statement indicating that on August 14, the company agreed to an offer for the complete takeover of its shares by a prospective buyer. The parties involved are working towards finalizing the deal within a 30-day period.

In light of this development, Mobius has decided to defer a previously arranged meeting with its creditors, originally set for the upcoming Thursday. This postponement is to provide room for the ongoing discussions regarding the acquisition to continue without interruption.

The potential acquirer’s intentions could involve utilizing Mobius’s Nairobi assembly plant for the production of their own vehicle models or to carry on the manufacturing of Mobius’s vehicles, which are designed with small and medium-sized enterprises (SMEs) in mind, particularly those in infrastructure, agriculture, and supply sectors operating in hard-to-reach areas.

Prior to this offer, on August 9, the Business Daily had reported that two vehicle dealerships were contemplating the purchase of the financially troubled automaker, with hopes of reviving the Mobius brand.

These reports followed comments from Hassan Abubakar, the Permanent Secretary for Trade and Industry, who mentioned that he, along with representatives from the Kenya Association of Manufacturers (KAM), had visited Mobius’s production site to explore options for a potential rescue strategy.

Mobius’s production capabilities are extensive, featuring facilities for constructing vehicle frames, applying anti-corrosion treatments, assembling vehicles, painting, conducting quality tests, and performing final inspections. The premises also include a research and development division.

The company has an established distribution partnership with the Chinese car manufacturer BAIC, which played a crucial role in the introduction of the Mobius III, a more sophisticated iteration of its previous models, Mobius I and Mobius II.

Mobius Motors was founded in 2009 by Joel Jackson, a British entrepreneur, during his time in Kenya. The company made its mark by launching a simplified SUV in 2014, specifically engineered for the challenging African terrain. The initial model was priced at $10,000 (KES 1.3 million), a figure significantly below the standard SUV market prices in Kenya. The Mobius III was later sold at $43,000, a competitive price when compared to the likes of imported and locally assembled vehicles such as the Toyota Land Cruiser Prados, Land Rover Defenders, and Jeep Wranglers, which are priced upwards of $65,000.