Document background
A Letter of Offer to Purchase Shares is a crucial document in Dutch corporate transactions that initiates the formal process of acquiring shares in a company. It is typically used when a potential buyer has completed preliminary discussions and wishes to formalize their interest in purchasing shares. The document, governed by Dutch law, serves as a precursor to a full share purchase agreement and outlines the fundamental terms of the proposed transaction. It includes essential information such as the identity of the buyer, the number and class of shares to be purchased, the proposed purchase price, payment terms, conditions precedent, and any requirements for due diligence. While often non-binding except for specific provisions like confidentiality and exclusivity, it sets the framework for subsequent negotiations and demonstrates serious intent to proceed with the transaction. The letter must comply with Dutch corporate law requirements and, for listed companies, relevant financial markets regulations.
