Document background
The Preliminary Share Purchase Agreement is a crucial document in Nigerian corporate transactions, typically used in the initial stages of share acquisition negotiations. It serves as a bridge between informal discussions and the final share purchase agreement, providing a legally binding framework while allowing for due diligence and detailed negotiation of terms. This document is particularly important in the Nigerian business context, where complex regulatory requirements and market conditions necessitate careful structuring of corporate transactions. It typically includes provisions for exclusivity, confidentiality, and basic commercial terms, while acknowledging the need for regulatory approvals and further due diligence. The agreement must comply with Nigerian corporate law, particularly the Companies and Allied Matters Act 2020, and considers requirements under Nigerian investment and securities legislation.
