THE Mara Phones factory at Dube trade port, which was liquidated last year just nine months after it began operating, has new owners.
A purchase agreement for the smartphone plant and its assets was concluded on 29 June. The agreement saw Lebashe Investment Group the owners of Arena Holdings, MPSA projects, and Mara Phones’ local management team acquire it.
Following its liquidation, Mara Phones’ local management made an offer to the IDC to buy back the factory, and the buyout process was given the green light in May by its creditors the Industrial Development Corporation (IDC) and Standard Bank.
The smartphone factory is now owned by Mara’s buyout team, Sylvester Taku, its local MD, and Mabuti Radebe, Lebashe Investment Group and MPSA projects.
“The deal sees Lebashe Investment Group taking up a significant shareholding in the business, which consists of a portfolio of smartphones, tablets, and other smart devices,” Mara Phones said in a statement.
The company will now focus on rebranding, marketing, and creating sustainable channels. It says it is also committed to establishing a healthy working environment and protecting employees’ dignity.
“The aim is to position Africa as a world-class manufacturing hub of hi-tech products and to locally manufacture affordable, high-quality mobile smart devices,” Mara Phones said.
The former government-backed entity which received considerable support from the IDC was liquidated nine months after it began operating in 2019. The plant once hailed as the hub of “true” African smartphones was opened to much fanfare, with President Cyril Ramaphosa praising it for making South Africa a leader in technology.
Total funding for the factory amounted to R429 million, with the IDC acting as the senior lender and approving total facilities worth R238 million. Ashish Thakkar CEO of Mara Phones’ CEO had pledged to raise R1.5 billion for the project, but its shareholders could not meet their total contribution, and the shortfall was covered by Standard Bank and the IDC.
