Preliminary Share Purchase Agreement Template for Indonesia

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Key Requirements PROMPT example:

Preliminary Share Purchase Agreement

"I need a Preliminary Share Purchase Agreement under Indonesian law for the acquisition of a 60% stake in a technology company, with specific provisions for intellectual property protection during due diligence and completion targeted for March 2025."

Document background
The Preliminary Share Purchase Agreement is a crucial document used in the initial stages of corporate acquisitions in Indonesia, setting out the framework for negotiating and completing a share purchase transaction. This document is typically used when parties have agreed on basic terms but need to conduct due diligence and finalize detailed terms. It addresses key aspects required under Indonesian law, including compliance with Law No. 40 of 2007 on Limited Liability Companies and relevant investment regulations. The agreement includes both binding elements (such as confidentiality and exclusivity) and non-binding elements (such as purchase price and transaction structure), while ensuring compliance with Indonesian language requirements under Law No. 24 of 2009. It serves as a roadmap for the transaction while protecting both parties' interests during the negotiation phase.
Suggested Sections

1. Parties: Identification of the seller(s), purchaser(s), and the target company

2. Background: Context of the transaction, including brief description of the target company and purpose of the preliminary agreement

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Subject Matter of Transaction: Description of shares to be purchased, percentage of ownership, and basic transaction structure

5. Preliminary Purchase Price: Indicative purchase price or price range and calculation methodology

6. Due Diligence: Scope, process, and timeline for due diligence investigation

7. Exclusivity: Terms of exclusive negotiation period and restrictions on dealing with other parties

8. Confidentiality: Obligations regarding confidential information exchanged during negotiations and due diligence

9. Binding and Non-binding Provisions: Clear identification of which provisions are legally binding and which are subject to negotiation

10. Timeline and Long-Stop Date: Key dates and deadlines for due diligence, definitive agreement, and transaction completion

11. Costs and Expenses: Allocation of costs related to the preliminary agreement and due diligence process

12. Governing Law and Jurisdiction: Specification of Indonesian law as governing law and jurisdiction for disputes

13. Language: Specification of dual language requirements per Law No. 24 of 2009

Optional Sections

1. Break Fee: Include when parties want to specify compensation if one party terminates negotiations without justified cause

2. Management and Operation During Due Diligence: Include when specific requirements for company operation during the due diligence period are needed

3. Regulatory Approvals: Include when the transaction will require specific regulatory approvals (e.g., BKPM, OJK)

4. Employee Matters: Include when preliminary agreements regarding employee retention or consultation are required

5. Intellectual Property Protection: Include when significant IP assets are involved in the transaction

6. Public Announcements: Include when either party is public or when transaction confidentiality is particularly sensitive

Suggested Schedules

1. Schedule 1 - Company Information: Basic information about the target company, including registration details and capital structure

2. Schedule 2 - Preliminary Terms Summary: Key commercial terms and conditions in summary form

3. Schedule 3 - Due Diligence Requirements: Detailed list of documents and information required for due diligence

4. Schedule 4 - Indicative Timeline: Detailed timeline with key milestones and deadlines

5. Schedule 5 - Form of Confidentiality Agreement: Detailed confidentiality terms if not already executed separately

6. Schedule 6 - Current Corporate Structure: Diagram showing current ownership structure of the target company

7. Schedule 7 - Proposed Post-Completion Structure: Diagram showing proposed ownership structure after transaction completion

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Technology

Financial Services

Mining

Agriculture

Real Estate

Telecommunications

Retail

Energy

Infrastructure

Healthcare

Education

Transportation

Consumer Goods

Professional Services

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Strategy

Executive Leadership

Corporate Secretarial

Compliance

Risk Management

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Development Director

Head of Legal

General Counsel

Investment Director

Managing Director

Business Development Manager

Finance Director

Company Secretary

Legal Counsel

M&A Manager

Commercial Director

Strategy Director

Risk Manager

Compliance Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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