Kenya’s Mobius Motors finds buyer after closure announcement

One week after Mobius Motors, a Kenya-based automaker backed by Playfair Capital, announced it was shutting down, the company has accepted an acquisition offer from an undisclosed buyer.

“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,” said Nicolas Guibert, a Mobius director, in a notice.

Following the offer, Mobius has postponed a meeting with its creditors, which is scheduled for Thursday, to allow acquisition negotiations to proceed.

The interested buyer may be looking to use the company’s assembly plant in Nairobi to produce their models or continue with the Mobius cars, which target SMEs in infrastructure, agribusiness, and supplies operating in remote areas.

On August 9, Business Daily reported that two dealers were considering acquiring the cash-strapped car maker with the prospect of rescuing the brand.

This came after Hassan Abubakar, Permanent Secretary for Trade and Industry, said he and the Kenya Association of Manufacturers (KAM) visited the company’s plant to discuss a possible rescue plan.

Mobius boasts an expansive production facility capable of fabricating vehicle frames, anti-corrosion treatment, general assembly, painting, quality testing, and final inspection. The facility also houses a research and development unit.

The company has a distributorship agreement with Chinese automaker BAIC, which was instrumental in the launch of Mobius III, an advanced version of its earlier models, Mobius I and Mobius II.

Founded in 2009 by British national Joel Jackson while working in Kenya, Mobius pioneered a stripped-down SUV model “built for African roads” in 2014. The first model cost $10,000 (KES 1.3 million), significantly lower than the market prices of standard SUVs in Kenya. The Mobius III was retailing at $43,000, compared to imported and locally assembled Toyota Land Cruiser Prados, Land Rover Defenders, and Jeep Wranglers, which cost more than $65,000.