Letter Of Intent To Purchase Shares for Nigeria

Letter Of Intent To Purchase Shares Template for Nigeria

A preliminary document governed by Nigerian law that outlines the intention to purchase shares in a company, setting forth the main terms and conditions of the proposed transaction. This document serves as a framework for negotiations and typically includes key commercial terms such as purchase price, due diligence requirements, exclusivity periods, and conditions precedent while maintaining a largely non-binding nature except for specific provisions like confidentiality and exclusivity. It forms an important step in Nigerian corporate transactions, providing a structured approach to negotiations while complying with local corporate and securities laws.

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What is a Letter Of Intent To Purchase Shares?

A Letter of Intent to Purchase Shares is a crucial preliminary document in Nigerian corporate transactions, serving as a formal expression of interest between parties considering a share purchase transaction. It is typically used after initial discussions but before detailed due diligence and final negotiations, outlining the fundamental terms of the proposed transaction while maintaining flexibility for future negotiations. Under Nigerian law, particularly considering the Companies and Allied Matters Act (CAMA) 2020 and the Investment and Securities Act 2007, this document helps establish the framework for the transaction while protecting both parties' interests through specific binding provisions like confidentiality and exclusivity. The letter typically precedes more detailed agreements and helps secure commitment from both parties while allowing for necessary due diligence and regulatory approvals.

What sections should be included in a Letter Of Intent To Purchase Shares?

1. Sender and Recipient Details: Full legal names and addresses of both parties

2. Subject Line: Clear identification of the document as a Letter of Intent for Share Purchase

3. Introduction: Opening paragraph identifying the parties and the target company

4. Transaction Overview: Brief description of the proposed share purchase, including number/percentage of shares

5. Purchase Price: Proposed purchase price and payment terms

6. Due Diligence: Terms and timeline for conducting due diligence

7. Timeline: Proposed timeline for completing the transaction

8. Exclusivity: Period during which the seller cannot negotiate with other parties

9. Confidentiality: Terms regarding the confidential treatment of information

10. Non-Binding Nature: Clear statement that the letter is non-binding except for specified provisions

11. Governing Law: Statement that Nigerian law governs the letter

12. Signature Blocks: Space for signatures of authorized representatives

What sections are optional to include in a Letter Of Intent To Purchase Shares?

1. Break Fee: Terms regarding any break fee payable if the transaction doesn't proceed, used in larger transactions

2. Conditions Precedent: Key conditions that must be met before proceeding with the transaction, included for complex deals

3. Regulatory Approvals: Section on required regulatory approvals, included when regulatory oversight is needed

4. Financing: Details of how the purchase will be financed, included when relevant to the seller

5. Employee Matters: Overview of intentions regarding employees, included when employment is a key consideration

6. Costs: Allocation of transaction costs, included in larger transactions

What schedules should be included in a Letter Of Intent To Purchase Shares?

1. Share Information Schedule: Details of the shares to be purchased, including class and rights

2. Key Terms Sheet: Summary of main commercial terms in table format

3. Timeline Schedule: Detailed timeline with key milestones and deadlines

4. Due Diligence Requirements: List of required due diligence materials and access requirements

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

Jurisdiction

Nigeria

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant Industries

Financial Services

Technology

Manufacturing

Energy and Natural Resources

Healthcare

Real Estate

Telecommunications

Agriculture

Consumer Goods

Professional Services

Mining

Oil and Gas

Infrastructure

Transportation and Logistics

Relevant Teams

Legal

Corporate Development

Finance

Executive Leadership

Mergers & Acquisitions

Strategy

Corporate Secretariat

Business Development

Investment

Risk Management

Compliance

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

Corporate Lawyer

Legal Counsel

Investment Banker

Business Development Manager

Corporate Development Director

Mergers & Acquisitions Manager

Company Secretary

Board Director

Financial Controller

Investment Manager

Strategy Director

General Counsel

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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