A week ago, the sad news that Mobius Motors, a Kenya-based automaker, had entered into voluntary liquidation was announced. This came after efforts to rescue the company for nearly one year failed. However, there might yet be a twist in the story as it has been disclosed that an unknown buyer has acquired 100% of Mobius Motors Kenya Ltd shares.
According to a Memo signed by Nicolas Guibert, Director Mobius Motors Kenya Ltd, the undisclosed buyer is expected to close the deal in the next 30 days.
“On 14-Aug-2024, Mobius Motors has 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.”
Mobius has been struggling to settle suppliers and pay salaries as debts from its operations rise. Due to the news of a buyer, a creditors’ meeting scheduled for August 15, 2024, has been postponed. Creditors to the company should await communication for the new date.
On the 5th of August 2024, shareholders resolved to place the company under liquidation as per Section 393(1) (b) of the Insolvency Act. The shareholders also appointed KVSK Sastry as the liquidator to wind up the company. This resolution by the board is enshrined in law under the Kenya’s Insolvency Act 2015.
British entrepreneur Joel Jackson established Mobius in Kenya in 2009. In 2014, the company introduced a budget-friendly SUV, tailored for African conditions, priced at $10,000 (KES 1.3 million). With $56 million raised over five funding rounds, Mobius focused on manufacturing its cost-effective SUVs tailored to the needs of SMEs in infrastructure, agriculture, and supply sectors operating in remote areas.
Its main backer was Playfair Capital, a UK-based VC. It also received funding from Chandaria Industries, a Kenyan-based manufacturer, and DFC, a US government development corporation.
