Four Major Process for You to Know Before Proceeding M&A Activities in Thailand
The booming business landscape of Thailand has turned it into a land of ambitions. The growth story of the country is coupled with investors looking for possible opportunities for Merger and Acquisition (M&A activities) in Thailand.
Are you willing to expand your business and get into this growth-ride? Are you thinking of going for merger and acquisition? The process of M & A can get complicated at times. So, before you move on with your venture, get to know the Thai legal processes for M & A. Here are a few things to consider before jumping into any deal:
There are mainly four stages in the Merger and Acquisition process in Thailand. These are:
#1. You enter into a Memorandum of Understanding (MoU) or a Letter of Intent (LOI). The terms of confidentiality and all the binding terms for your business is incorporated within this MoU.
#2. Check various issues with the company you are interested in entering into M & A. Carry out prior investigation related to their property, business, finance, and other legal issues.
#3. Once you have completed your investigation, enter into a buy-sell negotiation with the company. If you have identified any issues during the investigation, settle it.
#4. Prepare Sales and Agreements and other documents that are to be signed and sealed using the company seal. After this, validate these documents under the Civil and Commercial Code of Thailand.
There are processes that you must follow during any Merger. These are:
#1. Invite your shareholders and carry out a special resolution of merger with the votes of at least ¾ of the total shares of the shareholders present. Your target company also follows suit. Send a prior notice to the shareholders announcing this meeting. Also, announce it in the local newspaper. Do these 14 days prior to the date you want to conduct this meeting.
#2. Register a special resolution of merger within a period of 14 days after you get any such resolution. Advertise your intent to merge in a local newspaper.
#3. Within 60 days, send a registered mail to your company for having any opposition. Once this period is over, consider any other details that the newly merged company might have.
#4. Get your newly merged company registered within 14 days. You can do this after the merged resolution gets approved.
Hope these points will guide you through your endeavor. If you are interested in mergers and acquisitions In Thailand, get in touch with us. We provide in-depth advice on the legal processes and issues related to mergers and acquisition in Thailand.
