The UAE’s leading destination management company Lama Group and Carfare, a leading privately owned comprehensive mobility solution group, has announced the signing of a definitive agreement to merge two premier services in the hospitality industry. The strategic move will create a combined company worth over Dhs365 million. Both entities will retain their brand names but will operate under BK Group Holdings Co. and will offer complete travel and mobility solutions to more than 2.5million customers of the group.
The merger will allow the companies to diversify growth opportunities while continuing to invest in its current business. Nearly Dh.50million will be invested in infrastructure projects in the next six months to supply the demand that will be generated after the merger.
“Today we are creating the largest merger in the hospitality sector. The expansion of Dubai’s infrastructure in preparation for Expo 2020 has motivated us to take this step and invest for the future. We are combining two dynamic organizations in a rapidly growing industry,” said Kulwant Singh, CEO and Managing Director of the new Group.
“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,” said Jasbir Bassi, Managing Director of both the Groups.
The result of this merger will also enable us to offer a variety of innovative solutions related to travel and mobility industry, which in its essence will redefine the very concept of how business is done in these areas and will be true game changers, said Fahim Aziz the Group General Manager.
“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,” added Singh.
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 expansive network and diversified portfolio of products and services of the combined organizations will strengthen the company’s ability to serve a large number resident customers and arrivals from India, GCC and other markets. New offices will be created in the region to serve the customers including additional services such as express visa centers and luxury coaches.
