Document background
The Letter Of Intent Merger serves as a crucial preliminary step in Malaysian merger transactions, establishing the framework for subsequent negotiations and due diligence. This document is typically used when parties have reached initial understanding on key merger terms but before conducting detailed due diligence or drafting definitive agreements. It demonstrates serious intent while maintaining flexibility for detailed negotiations, addressing aspects such as transaction structure, valuation principles, exclusivity periods, and confidentiality requirements. Under Malaysian jurisdiction, while mostly non-binding, certain provisions like confidentiality and exclusivity can be made legally binding, requiring compliance with local corporate laws and regulations.
