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Letter Of Intent To Sell Shares for Indonesia

Letter Of Intent To Sell Shares Template for Indonesia

A Letter of Intent to Sell Shares under Indonesian law is a preliminary document that outlines the proposed terms and conditions for a share sale transaction. This document, while typically non-binding except for specific provisions such as confidentiality and exclusivity, serves as a framework for negotiations and subsequent documentation. It must comply with Indonesian corporate law, particularly Law No. 40 of 2007 on Limited Liability Companies, and may require consideration of capital market regulations if public companies are involved. The document typically includes key transaction terms, proposed pricing, due diligence requirements, and timeline considerations.

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What is a Letter Of Intent To Sell Shares?

A Letter Of Intent To Sell Shares is a crucial preliminary document in Indonesian corporate transactions, typically used when a potential seller wishes to formalize their intention to sell shares to a specific buyer while maintaining flexibility for negotiations. This document serves as a bridge between initial discussions and the final share purchase agreement, outlining key terms while generally remaining non-binding except for specific provisions. Under Indonesian law, particularly considering Law No. 40 of 2007 and relevant capital market regulations, this document needs to address specific local requirements and corporate governance considerations. It's commonly used in both private and public company transactions, though the requirements and complexity may vary significantly depending on the nature of the shares being sold and whether foreign investment elements are involved.

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

1. Date and Parties: Full legal names and details of the potential seller and buyer of the shares

2. Introduction: Brief statement establishing the purpose of the letter

3. Subject Matter: Clear identification of the shares being offered for sale, including company details and number of shares

4. Proposed Purchase Price: Indication of the proposed purchase price or price range, subject to due diligence

5. Key Terms: Overview of the fundamental terms of the proposed transaction

6. Due Diligence: Outline of the proposed due diligence process and timeframe

7. Timeline: Proposed schedule for completing the transaction

8. Confidentiality: Basic confidentiality obligations regarding the proposed transaction

9. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific clauses

10. Governing Law: Specification of Indonesian law as the governing law

11. Signature Block: Space for signatures of authorized representatives of both parties

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

1. Exclusivity Period: Used when parties want to establish an exclusive negotiation period

2. Break Fee: Include when there's agreement on fees payable if either party withdraws

3. Conditions Precedent: When specific conditions need to be met before proceeding with the transaction

4. Interim Operations: Include when there's need to specify how the target company should operate during negotiations

5. Financing: Used when the buyer needs to indicate source of funds or financing conditions

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

7. Dispute Resolution: Optional section for specific dispute resolution mechanisms

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

1. Description of Shares: Detailed information about the shares being offered, including class, rights, and current ownership structure

2. Indicative Timeline: Detailed timeline showing key milestones and deadlines for the proposed transaction

3. Due Diligence Requirements: List of documents and information required for due diligence

4. Corporate Structure Chart: Visual representation of the current corporate structure and proposed changes

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

Indonesia

Publisher

Ƶ

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions



























Clauses

























Relevant Industries

Banking & Financial Services

Manufacturing

Technology

Real Estate

Mining & Resources

Retail & Consumer

Healthcare

Infrastructure

Energy

Telecommunications

Agriculture

Transportation & Logistics

Education

Media & Entertainment

Relevant Teams

Legal

Corporate Development

Finance

Executive Leadership

Mergers & Acquisitions

Investment

Risk & Compliance

Corporate Secretariat

Business Development

Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Corporate Development Director

Legal Director

Investment Director

Managing Director

Board Member

Corporate Secretary

Legal Counsel

M&A Manager

Investment Manager

Financial Controller

Business Development Manager

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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