Tender Offer Memorandum Template for Nigeria

A comprehensive legal document issued under Nigerian law that outlines the terms, conditions, and procedures for a tender offer to purchase shares or securities from shareholders. The document complies with the Investment and Securities Act 2007 and relevant SEC regulations, providing detailed information about the offer price, acceptance procedures, timeline, and other material terms. It includes mandatory disclosures required by Nigerian securities laws and serves as the primary communication tool between the offeror and target shareholders, ensuring transparency and regulatory compliance in the transaction.

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What is a Tender Offer Memorandum?

The Tender Offer Memorandum is a crucial document in Nigerian corporate transactions, primarily used when a company or entity seeks to purchase shares from existing shareholders through a formal tender offer process. This document must comply with the Investment and Securities Act 2007, SEC Rules and Regulations, and other relevant Nigerian legislation. It typically becomes necessary during corporate acquisitions, restructurings, or when a company wishes to reduce its outstanding shares. The memorandum contains essential information such as offer terms, pricing, conditions, acceptance procedures, and regulatory disclosures, serving as both a legal instrument and an informational document for shareholders. Its preparation requires careful consideration of Nigerian securities laws, corporate regulations, and stock exchange requirements to ensure full compliance and transparency in the tender offer process.

What sections should be included in a Tender Offer Memorandum?

1. Important Information and Disclaimers: Front-section disclaimers, regulatory statements, and key notices to investors

2. Summary of the Tender Offer: Key terms, timeline, and principal features of the offer in condensed format

3. Offer Statistics and Timetable: Detailed breakdown of offer prices, key dates, and deadlines

4. Background and Purpose: Context of the tender offer and strategic rationale

5. Terms and Conditions of the Tender Offer: Comprehensive details of offer terms, conditions precedent, and mechanics

6. Procedures for Tendering Shares: Step-by-step instructions for participating in the offer

7. Withdrawal Rights: Explanation of circumstances and procedures for withdrawing tendered shares

8. Source and Amount of Funds: Information about funding arrangements for the tender offer

9. Purpose of the Tender Offer and Plans: Detailed explanation of strategic objectives and future plans

10. Tax Considerations: Overview of relevant Nigerian tax implications for tendering shareholders

11. Legal Matters: Statement of legal compliance and relevant regulatory approvals

12. Required Regulatory Information: Mandatory disclosures required by Nigerian securities laws

What sections are optional to include in a Tender Offer Memorandum?

1. Foreign Jurisdiction Restrictions: Required if the offer extends to shareholders in other jurisdictions

2. Currency Exchange Considerations: Needed if offer involves multiple currencies or foreign exchange components

3. Competing Offers: Include if there are other ongoing or potential competing offers

4. Special Deal Arrangements: Required if there are specific arrangements with certain shareholders

5. Related Party Transactions: Include if there are any relevant related party transactions

6. Financial Advisor's Opinion: Include if an independent financial advisor's opinion has been obtained

7. Pro Forma Financial Information: Required if the tender offer will materially affect the company's financial position

What schedules should be included in a Tender Offer Memorandum?

1. Form of Tender: Official form for shareholders to tender their shares

2. Acceptance and Transfer Form: Legal documentation for share transfer

3. Financial Information: Relevant financial statements and information

4. Directors' Statutory Declarations: Required declarations under Nigerian law

5. Regulatory Approvals: Copies of relevant regulatory approvals and permits

6. Professional Advisers' Consents: Written consents from advisers referenced in the document

7. Company Information: Detailed corporate information and historical background

8. Share Capital and Shareholding Structure: Details of company's share capital and major shareholders

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

Jurisdiction

Nigeria

Publisher

Genie AI

Document Type

Offering Memorandum

Cost

Free to use

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