The deal of the year in Romanian online media

The decision to sell a minority interest in InternetCorp to 3TS Capital Partners (www.3tscapital.com), one of the leading private-equity firms in Central and Eastern Europe, was made at the beginning of the year after a round of talks between the parties involved, said Mihai Seceleanu (photo), InternetCorp’s CEO.

“We believed it was the right time to seriously consider proposals from institutional investors, interested in acquiring a minority stake in InternetCorp. We’ve spent the past four years in building and consolidating the largest independent online publisher in Romania and we considered that the best next step was to involve as a shareholder an investment fund with both the know-how and the financial power that can further fuel our development and help us improve our market position”, Seceleanu told Wall-Street.

Talks between 3TS Capital Partners and InternetCorp were opened in November 2008. The lead adviser was the indie investment firm Capital Partner, that assisted eJobs in the sale of the minority stake to Tiger Global in 2007. Pacuraru, Iliescu, Mazareanu & Asociatii provided legal assistance to InternetCorp throughout the negotiation process.

But before talks with 3TS began, InternetCorp had received better takeover offers, says Mihai Seceleanu.

“It was not a bidding process – we received several offers until signing the term sheet with 3TS, in March 2009. Even if afterwards we were contacted by two other interested parties, we weren’t involved in negotiation with them, either because we were tied up by the exclusivity clause present in the term sheet or, later, because we weren’t happy with that specific potential investor”, InternetCorp’s CEO pointed out.

The deal will enable InternetCop quicken the development pace of the media company. “The transaction will definitely allow us to accelerate InternetCorp’s development and to build a more mature and sustainable business. We cannot give specific details, but everyone will see in the near future what this deal can and will bring for the company in terms of portfolio, audience, image and strength. With 5 years of history, an excellent team, a portfolio consisting of top sites and a strong financial backer, InternetCorp is no longer a start-up”.