eMAG.ro was bought by Naspers in a transaction worth 100 million euros

  eMAG.ro, probably the largest online store in Romania, was purchased by the South African media group Naspers in a transaction worth 100 million euros. The South Africans acquired the majority of the shares from Asesoft and part of the shares of the other associates, and now have control over the entire store. Naspers is a media group with an annual turnover of approximately 5 billion dollars, so it would have sufficient resources to invest in the evolution eMAG.

The South African media giant Naspers, with a global turnover of over 5 billion dollars, bought the majority stake in the largest Romanian online store, eMAG, for the sum of around 100 million euros, according to some sources in the market. Neither the buyer nor the seller has commented on the transaction so far.

According to information from the market, Naspers bought the entire package of shares that businessman Sebastian Ghiţă owned in eMAG, as well as, proportionally, part of the shares of the other two shareholders, Iulian Stanciu and Radu Apostolescu. According to the latest data available, Radu Apostolescu had 16,33%, Asesoft Web (Sebastian Ghiţă and Iulian Stanciu) had 3%, and Asesoft Distribution (half Iulian Stanciu, half Sebastian Ghiţă) had 80,67% of eMAG shares.

UPDATE: Here is the official press release of eMAG.

Naspers invests in eMAG

Bucharest, July 30, 2012 – The Naspers Group, one of the largest global online players invests in eMAG, the largest company in Romania and Eastern Europe on the online trade market. Thus, Naspers will hold 70% of the shares of the eMAG company, Iulian Stanciu 21,6% and Radu Apostolescu will keep 8,4% of the shares. The Naspers group's entry into the shareholding was determined by eMAG's position in regional retail, the group's intention being to capitalize on the local company's know-how for the group's expansion in the region.

Iulian Stanciu will manage the company as General Director of eMAG, while Radu Apostolescu will occupy the position of Development Director.

eMAG will expand to the main markets in Eastern Europe. A first step will be taken this year by entering Bulgaria, and soon new operations will be launched in other large markets in the region.

The Naspers Group is one of the largest online players in Asia, South America, Africa, Russia and Central Europe. The company has a turnover of US$5,3 billion in the last financial year and is valued on the Johannesburg Stock Exchange at US$21,6 billion. In China and Russia, the Naspers group owns the most accessed online platforms: Tencent (with over 800 million registered users) and Mail.ru (which attracts over 70% of Russian internet traffic). At the local level, Naspers owns PayU Romania, the online platforms autovit.ro, mercador.ro, compari.ro and is one of the shareholders of Fashion Days.

Naspers is interested in building a long-term partnership with eMAG and its current management team. Cristina Berta, Head of M&A Naspers Europe, said: "We are delighted to start working with the eMAG team. Through their results and achievements to date, eMAG has proven to be a true leader in online commerce innovation and implementation. We look forward to working together in the years to come to develop and expand operations in the online marketplace in the region."

eMAG registered a turnover of 2011 million EUR in 145, the company's team currently has over 450 members. The retailer has a portfolio of over 60.000 products, developed by 400 international brands.

"For me perhaps the most important component of the transaction is the recognition of the value of the company and the results of the team that we have built all these years. We proved that entrepreneurship works in Romania, that you can develop a solid business, strong enough to make a global giant in the IT field turn you into the spearhead for the group's development in the region. It is in fact an important step for the local industry and a signal that Romanian players can be attractive for large international investors", declares Iulian Stanciu, General Director of eMAG. 

"11 years ago we were going on the road to a non-existent market and we were adapting a trade model that seemed torn from movies for Romania. Without clear plans and without knowing where we will end up. After all these years, one of the world's online giants comes to Romania and wants to continue and replicate all our plans in the region. Does anyone still have doubts that the American dream can be lived at home?" said Radu Apostolescu, eMAG co-founder and Development Director.  

The transaction will become effective after receiving approval from the Competition Council.