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Share And Asset Purchase Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that documents the terms and conditions for the simultaneous purchase of shares in a company and specific assets. This document combines elements of both share acquisition and asset purchase, detailing the transfer of ownership, purchase price, warranties, representations, conditions precedent, and completion mechanics. It complies with Malaysian corporate law requirements, including the Companies Act 2016 and relevant regulatory frameworks, while addressing both tangible and intangible asset transfers alongside share ownership changes.

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What is a Share And Asset Purchase Agreement?

The Share and Asset Purchase Agreement (SAPA) is a sophisticated transaction document used in Malaysian business acquisitions where both company shares and specific assets are being acquired simultaneously. This hybrid agreement is particularly useful when the transaction structure requires both corporate ownership transfer and direct asset acquisition, common in complex M&A deals under Malaysian jurisdiction. The document encompasses detailed provisions for share transfer mechanics, asset identification and transfer, purchase price allocation, warranties for both shares and assets, and completion requirements. It must comply with Malaysian corporate and contract law, including the Companies Act 2016, while addressing practical aspects such as employee transfers, intellectual property rights, and regulatory approvals. The SAPA is typically used in situations where buyers wish to acquire both control of a company and specific assets that may be held outside the target company structure.

What sections should be included in a Share And Asset Purchase Agreement?

1. Parties: Identification of buyer, seller and any guarantors

2. Background: Context of the transaction, including description of the target company and assets

3. Definitions and Interpretation: Defined terms and interpretation rules

4. Sale and Purchase: Core transaction terms for both shares and assets

5. Purchase Price: Consideration amount, payment terms, and any adjustment mechanisms

6. Conditions Precedent: Prerequisites to completion of the transaction

7. Pre-Completion Obligations: Parties' obligations between signing and completion

8. Completion: Mechanics and requirements for closing the transaction

9. Seller's Warranties: Warranties regarding the shares, company and assets being sold

10. Buyer's Warranties: Warranties from the buyer, including capacity to purchase

11. Limitations on Liability: Caps, thresholds and time limits on warranty claims

12. Tax Covenants: Tax-related indemnities and obligations

13. Confidentiality: Obligations regarding transaction and business information

14. Announcements: Requirements for public statements about the transaction

15. Post-Completion Obligations: Ongoing obligations after completion

16. Boilerplate Provisions: Standard legal provisions including notices, governing law, etc.

What sections are optional to include in a Share And Asset Purchase Agreement?

1. Employee Matters: Terms regarding transfer of employees - include if employees are transferring

2. Intellectual Property: Specific provisions for IP transfer - include if significant IP assets

3. Property: Provisions regarding real property transfers - include if real estate involved

4. Competition/Regulatory Approvals: Include if transaction requires regulatory clearance

5. Transitional Services: Include if seller will provide services post-completion

6. Foreign Investment Provisions: Include for cross-border transactions

7. Environmental Matters: Include for businesses with environmental risks

8. Data Protection: Include if personal data is being transferred

9. Non-Compete Provisions: Include if seller restrictions are required

What schedules should be included in a Share And Asset Purchase Agreement?

1. Sale Shares Details: Description of shares being transferred

2. Sale Assets List: Detailed inventory of assets being transferred

3. Excluded Assets: List of assets explicitly excluded from the sale

4. Properties: Details of any real property included in the sale

5. Intellectual Property Rights: Schedule of IP rights being transferred

6. Material Contracts: List of key contracts being transferred

7. Employee Information: Details of transferring employees

8. Completion Requirements: Detailed closing checklist and requirements

9. Warranties: Detailed warranties given by the seller

10. Form of Transfer Documents: Templates for share transfer forms and other transfer documents

11. Purchase Price Adjustments: Detailed mechanics for price adjustment calculations

12. Third Party Consents: List of required third party approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Malaysia

Publisher

Genie AI

Cost

Free to use

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