Document background
A Stock Purchase Letter of Intent (LOI) is a crucial preliminary document used in Nigerian corporate transactions when one party intends to purchase shares in a company. It serves as a roadmap for the transaction, outlining key terms such as purchase price, due diligence requirements, and timeline, while establishing certain binding obligations like confidentiality and exclusivity. This document is particularly important in the Nigerian business context, where it helps parties align their expectations and commence due diligence while complying with local corporate and securities laws. While not the final agreement, the LOI demonstrates serious intent and typically precedes more detailed definitive agreements. It's commonly used in both private and public company transactions, though the specific terms and complexity may vary based on the transaction size and nature of the business.
