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Letter Of Intent To Purchase Shares for Malaysia

Letter Of Intent To Purchase Shares Template for Malaysia

A Letter of Intent to Purchase Shares is a preliminary document that outlines the proposed terms and conditions for the purchase of shares in a company under Malaysian law. It serves as a framework for negotiations and typically includes key terms such as purchase price, number of shares, due diligence requirements, and exclusivity periods. While generally non-binding except for specific provisions like confidentiality, it demonstrates serious intent to proceed with the transaction and sets the foundation for the subsequent definitive share purchase agreement. The document must comply with Malaysian corporate law, particularly the Companies Act 2016 and relevant securities regulations.

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What is a Letter Of Intent To Purchase Shares?

A Letter of Intent to Purchase Shares is commonly used in Malaysian corporate transactions as a preliminary step before entering into a definitive share purchase agreement. This document is typically used when a potential buyer has identified a target company and wishes to formally express their interest in purchasing shares while setting out the basic terms of the proposed transaction. It serves multiple purposes: demonstrating serious intent, establishing a framework for negotiations, and outlining key terms such as purchase price, exclusivity period, and due diligence requirements. While generally non-binding, certain provisions like confidentiality and exclusivity are typically binding. The document must comply with Malaysian legislation, including the Companies Act 2016, Capital Markets and Services Act 2007, and relevant securities regulations. It's particularly important in complex transactions or when dealing with multiple shareholders, as it helps align parties' expectations and provides a roadmap for the transaction.

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

1. Date and Addresses: Current date and formal addresses of both parties

2. Opening and Subject Line: Clear indication that this is a Letter of Intent regarding share purchase

3. Introduction: Identification of the parties and their roles (buyer/seller)

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

5. Purchase Price: Proposed purchase price and payment terms

6. Due Diligence: Statement regarding the buyer's right to conduct due diligence

7. Timeline: Proposed timeline for completing the transaction

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

9. Confidentiality: Binding confidentiality provisions

10. Exclusivity: Period of exclusive negotiations

11. Closing: Signature blocks and formal closing of the letter

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

1. Conditions Precedent: Include when there are specific conditions that must be met before proceeding with the transaction

2. Break Fee: Include when parties want to specify compensation if either party withdraws from negotiations

3. Governing Law: Include when dealing with international parties or complex transactions

4. Dispute Resolution: Include for complex transactions or when parties want to specify dispute resolution mechanisms

5. Costs and Expenses: Include when parties want to specify how transaction costs will be allocated

6. Regulatory Approvals: Include when the transaction requires specific regulatory clearances

7. Employee Matters: Include when the transaction may impact existing employees

8. Intellectual Property: Include when IP assets are a significant consideration in the transaction

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

1. Share Details: Detailed description of the shares being purchased, including class, rights, and current ownership

2. Company Information: Key details about the target company, including registration number, registered address, and business nature

3. Price Calculation: Detailed breakdown of how the purchase price was determined

4. Due Diligence Checklist: List of documents and information required for due diligence

5. Timeline Schedule: Detailed timeline with specific milestones and deadlines

6. Required Approvals: List of necessary regulatory or third-party approvals

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions

























Clauses
























Relevant Industries

Banking and Financial Services

Manufacturing

Technology

Real Estate

Retail and Consumer

Healthcare

Energy and Resources

Transportation and Logistics

Professional Services

Media and Entertainment

Telecommunications

Agriculture

Education

Construction and Infrastructure

Relevant Teams

Legal

Corporate Development

Finance

Executive Leadership

Mergers & Acquisitions

Corporate Strategy

Investment

Due Diligence

Compliance

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Corporate Development Director

Legal Counsel

Company Secretary

Investment Manager

Mergers & Acquisitions Director

Business Development Manager

Finance Director

Corporate Strategy Director

Board Member

Shareholder Relations Manager

Due Diligence Manager

Transaction Advisory Manager

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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