Riyadh – Mubasher: Al Tayyar Travel Group Holding Co plans to expand in the Saudi travel sector by using revenues resulting from selling its 17.7% stake in Dubai-based ride sharing Careem to Uber Technologies, the CEO of the travel group said.
The Saudi travel group aims to raise its market share in the kingdom’s travel sector which exceeds SAR 130 billion, Abdullah Al-Dawood told Al Arabiya on Tuesday.
The tourism operator plans to ramp up its sales in online travel platforms to SAR 4 billion by 2020 from SAR 2 billion in 2018, he added.
Al Tayyar Travel expected to receive SAR 1.78 billion in revenues from selling its stake in Careem and projected a total profit of SAR 1.34 billion in 2019.
About 60% of revenues from the sale will be received in cash and the remaining 40% in convertible bonds, Al-Dawood revealed.
Uber inked a deal to acquire its Middle East rival Careem for $3.1 billion and the deal is set to be finalised in the first quarter of 2020, Bloomberg News reported on Tuesday.
Al Tayyar Travel’s stock soared 9.98% to SAR 28.65, recording its highest level since May 2018.