Lama Group, Carfar in merger deal
Dubai, April 8, 2014
Lama Group, a leading destination management company in the UAE, and Carfare, a privately-owned comprehensive mobility solution group, have signed a deal to merge the two services.
The move will create a combined company worth over Dh365 million ($99.3 million), said a statement.
The entities will retain their brand names but will operate under BK Group Holdings and offer complete travel and mobility solutions to more than 2.5 million customers of the group, it said.
Jasbir Bassi, managing director of both the groups, said : “Both our companies have witnessed high growth and success over the years so it made sense to combine our strengths. We will be able to significantly broaden our reach in the UAE and in the region and continue to take substantial market share from existing competitors.
“This merger gives us the advantage to create a truly global company, a market leader in providing complete travelling solutions for both individual and corporate clients.”
The merger will allow the companies to diversify growth opportunities while continuing to invest in its current business. Nearly Dh50million will be invested in infrastructure projects in the next six months to supply the demand that will be generated after the merger.
Kulwant Singh, CEO and managing director of the new group, said: “We believe the merger will enhance the products and services we are able to offer to our customers in every market we serve. We are certain that Dubai will experience millions of visitors especially during the Expo 2020 and with our collective infrastructure we will be able to take advantage of this emerging opportunity.”
The management team is expected to draw upon the experienced group of leaders from both companies with KS Bassi serving as chairman of the group while Singh and Jasbir Bassi will serve as managing directors. Fahim Aziz and Avtar Singh will be the general managers for both the groups respectively.
The group will also create new offices in the region to serve the customers including additional services such as express visa centers and luxury coaches.
The companies are set to exhibit in this year Arabian Travel Market, a leading travel and trade exhibition in the Middle East, which will run from May 5 to 8.
As a result of the merger, the group will have an existing fleet of 3,500 cars, 200 limousines, a fleet of 4x4 vehicles, three campsites, two cruises and two yachts, with 650 employees working across a network of 14 branches in the UAE and nine abroad.
BK Group Holdings Co. will expand both companies operations into a new head office in Dubai Investment Park spread over nearly 40,000 sq ft and a service centre. - TradeArabia News Service