“As a business, we are committed to having this business dispute resolved at the earliest opportunity.”

Greetings from Simba Group,

The last few days have been quite challenging on me, family, colleagues, business partners, staff, and other Simba Group stakeholders. Ugandan media has recently been awash news reports about members of the Simba Group. These attacks against Simba Group are an affront to our economic prospects as they inhibit the capacity of local entrepreneurs to exploit local and international opportunities. Whilst I may be mindful of the fact that certain aspects of this matter are still pending in the courts and/or dispute resolution avenues, I have after careful reflection, elected to share this statement with you.

The statement is issued without prejudice and I will attempt to outline the facts of the matter at hand and trace the genesis of our engagement and apparent disagreement with one of my business partners. This note also serves as a reassurance to all our business partners, affiliates, and stakeholders that I remain committed to bring the issues at hand to a close justly, fairly and as expeditiously as possible.

Patrick Bitature
Chairman, The Simba Group

  • The Genesis 2014
    Simba Group approached Vantage Capital in 2014, seeking an alternative to the more common and mainstream pure debt funding for business expansion. Consequently, a “Mezzanine Term Facility Agreement” (MTFA) was signed between Vantage Mezzanine Fund II Partnership (“Vantage”) and Simba Properties Investment Company (Simba) for $10,000,000 to fund projects within the Group. These projects included the completion of Protea by Marriott Skyz Hotel and working capital for Simba’s ElectroMaxx Power subsidiary. The agreement had a 3-year moratorium (freeze) for repayment of both the principal and interest.
  • Negotiation 2017
    Following the signing of the Mezzanine facility in 2014, the first repayment was due in 2017. However, unforeseen challenges such as the unprecedented delay of the Final Investment Decision (FID) on the oil and gas projects and Vantage’s requirement to Simba to improve the Hotel’s fire and safety features to internationally benchmarked standards hindered our envisaged projects. Simba proactively engaged Vantage and mutually agreed to a further moratorium for two (2) years, thereby mutually agreeing to freeze all payments until December 2019.
  • December 2019
    Vantage issued a demand for the principal and interest from 2014 onwards.
  • December 2020
    By early 2020 the principal and interest had increased. With the effects of COVID-19 on the business and the economy, Simba was once again faced with great business challenges. Vantage, nevertheless, attempted to realize their security over the prime assets of Simba. The intervention of Court was then sought in a bid to secure a determination on several issues. The Court referred the Parties to arbitration at a seat of Vantage’s choosing in accordance with the terms of the MTFA. Vantage chose London as the seat of the Arbitration and filed a Request to Arbitrate at the International Chamber of Commerce (ICC). Simba duly acknowledged and responded to the Request to Arbitrate and continues to participate in this process to date.
  • December 2021
    However, notwithstanding the reference to arbitration, Vantage attempted to transfer shares in Simba which they held simply as security. Uganda Registration Service Bureau (URSB) a government body declined to register the transfer of shares and directed Vantage to follow the direction of Court to essentially resolve the issues at arbitration first.
  • 9 May 2022
    Vantage being displeased with that decision sought judicial review in the High Court seeking mandamus orders to direct URSB to transfer the shares, a matter which court dismissed on the grounds that they, Vantage, had violated mandatory provisions of the law under the Partnership Act and the Business Names Registration Act, thereby in effect lacking legal presence to sue or be sued.
  • 16 May 2022
    Vantage lodged a Notice of Appeal against the decision of the Court.
  • 18 May 2022
    Despite the court ruling on 9th May, Vantage went on to advertise some of the Group's properties in total disregard to the foundation and concerns raised by the Court in its decision. This inevitably sparked off the mayhem that broke out all over social media and other news outlets.
  • 30th May 2022
    The Simba Group Chairman, Dr. Patrick Bitature issues a statement to set the record straight and reassure business partners, affiliates and stakeholders.
  • 27 June 2022
    Simba Telecom and Simba Properties under a certificate of urgency filed an application of appeal, appealing against the High Court decision of Justice Stephen Mubiru. The High Court decision allowed the auctioning of six properties belonging to Simba Properties which are subject to a commercial dispute currently under international arbitration between the company and Vantage Capital. The application of appeal also sought injunctive orders against auctioning of the properties. Court of Appeal Judge Justice Christopher Gashirabake ordered a stay of the High Court orders noting that the properties faced an imminent threat of being disposed pending the application before the Court of Appeal. Justice Gashirabake in his ruling ordered that the injunctive orders should not interfere with the ongoing arbitration process.