June 10, 2014

Romanian founder of online retailer eMAG.ro sells his remaining stake after record year

Romanian entrepreneur Radu Apostolescu, the founder of online retailer eMAG.ro, officially announced the sale of his remaining 8.4 percent stake in the company that holds the brand, Dante International SA. This comes after Dante International posted record sales of EUR 188 million for 2013, 21 percent higher than in 2012.

Apostolescu, who is currently development manager for eMAG, will sell his shares to the company’s other two shareholders, South-African investment fund Naspers and Iulian Stanciu, who is the company’s CEO. Naspers took 70 percent of eMAG.ro back in 2012. Stanciu holds 21.6 percent of the company.

The value of the transaction was not disclosed. Back in 2012, Naspers paid some USD 80 million for the majority stake in eMAG.ro, according to Romanian media. Since then the company increased sales by a third (2013 compared to 2011). This means that Apostolescu should cash in at least USD 10 million for his 8.4 percent stake.

“Radu had a major contribution to everything that eMAG stands for today, from the business idea to his share in all evolution stages. The satisfaction and the reward match his contribution,” Iulian Stanciu, eMAG CEO said.

Apostolescu said he never dreamed of reaching this level with eMAG 13 years ago when he launched it. “For me it’s the American dream come true,” he added. But he said he took this decision to be able to start or support other projects.

eMAG, which started as an IT and electronics retailer, expanded its product range in recent years and is now also selling toys, books, do-it-yourself items or auto insurance. The company aims to expand its operations in the region.

For this year, eMAG aims to increase sales by 40 percent, to EUR 260 million. It will invest EUR 11.5 million and reach 1,000 employees, compared to 576 last year.

Source: romania-insider.com