Mobius Motors' 13-year journey ends with sale to undisclosed buyer
By Lucy Mumbi |
On August 5, 2024, the Company entered into Creditors’ Voluntary Liquidation, as per the Insolvency Act, ending its 13-year journey amidst mounting debts and a multi-million shilling tax dispute.
Automaker Mobius Motors Kenya Ltd has been acquired by an undisclosed buyer, who has purchased 100 per cent of its shares.
This was revealed on Wednesday by Mobius Motors Kenya Ltd Director Nicolas Guibert, who noted that the transaction is set to close within 30 days.
"On August 14, 2024, Mobius Motors accepted a bid for the acquisition of 100 per cent of its shares by an undisclosed buyer. Both parties are looking to close the transaction within 30 days," Guibert said.
Guibert also announced that the meeting of the creditors originally scheduled for August 15, 2024, at 9 am at Mobius Factory (Sammer Africa, Mombasa/ Enterprise Road Junction, Nairobi) has been postponed to a date that will be communicated in due course.
The meeting had been scheduled with creditors to review and approve the choice of KVSK Sastry as the liquidator.
"Notice is hereby given that a meeting of the creditors will be held to consider, and if thought fit, to pass a Resolution approving the Shareholders' nominee as the Liquidator of the Company as per Section 408 of the Insolvency Act," Guibert said.
On August 5, 2024, the Company entered into Creditors’ Voluntary Liquidation, as per the Insolvency Act, ending its 13-year journey amidst mounting debts and a multi-million shilling tax dispute.
In 2018, the Kenya Revenue Authority (KRA) issued Mobius with a tax demand of Sh85.74 million, following an assessment of funds received from its parent company between January 2014 and December 2016.
Mobius contested the demand before the Tax Appeals Tribunal, citing the company's fragile financial situation, evidenced by its submitted accounts, and warning that such a payment could result in its collapse.
Despite these arguments, the Tribunal ruled against Mobius. By August 2020, the company's financial records indicated a debt burden of Sh649.2 million and a shareholders' deficit of Sh389.1 million leading to its closure.
Mobius was founded in 2011 by British businessman Joel Jackson to build cars for the African market. The first generation, Mobius II, was launched in Kenya in 2015.
The company was incorporated in the United Kingdom in 2010. As of 2018, the company was in the process of building an in-country manufacturing plant.
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