Cross-Border M&A / SPA / SHA / Share Transfer / Tender Offer Notarisation for Foreigners — Buyers, Sellers, Sponsors, PE / VC and Strategic Investors

**Why M&A requires notarisation — four Thai regulators must clear the deal in parallel.** A cross-border M&A targeting a Thai company must clear (1) **DBD** (share-transfer registration under CCC § 1129 + Bor.Or.Jor.5 within 14 days); (2) **TCCT** (pre-merger filing if combined turnover ≥ THB 1,000M or acquirer + target ≥ THB 1,000M under the 2018 notification); (3) **BoT** (FX reporting Form ThorTor.3/4 + Form Tor.Tor.40 for foreign direct investment above USD 50K); (4) **Revenue Department** (15% WHT on capital gain of the foreign seller — RC § 40(4)(g) + § 50, or DTA exemption). Each regulator demands notarised + Apostilled signatures from both foreign buyer and seller. Unnotarised signatures = registration refused + closing failed + break fee 1–5% of deal value.

**SPA structure — 12 sections the notary reviews before wet signing.** Standard cross-border SPA (AIPN / ABA Model / Practical Law style) contains: (1) definitions + interpretation; (2) sale + purchase + consideration (locked-box vs completion accounts); (3) conditions precedent (regulatory, antitrust, FBA, MAC, third-party consent, funding); (4) pre-completion covenants (ordinary course + restricted actions); (5) completion mechanics (wet signing, wire confirmation, share transfer, resignation, closing certificates); (6) Reps & Warranties (title, capacity, compliance, financial, tax, employment, IP, IT, data protection, anti-bribery, sanctions, AML, ESG); (7) indemnities (specific vs general); (8) limitation of liability (de minimis / basket / cap / 12–36 month time bar); (9) tax covenant + tax deed; (10) restrictive covenants (non-compete 24–60 months + non-solicit); (11) boilerplate (governing law, jurisdiction, ICC / SIAC / HKIAC arbitration); (12) schedules (disclosure, permitted encumbrance, material contracts). Notarisation covers every page + every signature + every initial.

**SHA — the shareholders' agreement for JV / PE investments.** When the buyer takes less than 100% (PE / VC / JV) the SHA must cover: (1) board composition (director nomination right per shareholding + independent directors); (2) reserved matters (unanimous / super-majority — budget, M&A, capex, dividend, IPO, liquidation); (3) pre-emption (ROFR / ROFO before any transfer to third parties); (4) tag-along (minority follow majority); (5) drag-along (majority drag minority above X%); (6) put / call options (exit mechanic — fair value / formula / auction); (7) anti-dilution (full ratchet / weighted average); (8) liquidation preference (1x non-participating / participating); (9) information + audit rights; (10) deadlock resolution (Russian roulette / Texas shoot-out / mediation + arbitration); (11) IPO + listing covenant (drag-to-IPO); (12) restrictive covenant + ESG commitment. We notarise the SHA + POAs for nominee directors where present.

**Share transfer instrument (Bor.Or.Jor.5) — mandatory form under CCC § 1129.** Section 1129 reads: 'transfer of registered shares must be in writing, signed by transferor and transferee, with one witness attesting the signatures, and entered in the company's share register before it can be set up against the company or third parties.' DBD form = Bor.Or.Jor.5. A notary acts as the **statutory witness** + attests the wet signature + verifies authority (board resolution + specimen where signatory is corporate). Apostille for offshore use. If the transferor is a foreigner outside Thailand → execute a POA in their home country + Apostille → courier the original to Thailand (DHL / FedEx, 3–5 days). The Thai notary then attests the attorney-in-fact's signature and executes Bor.Or.Jor.5 on the transferor's behalf.

**Disclosure schedule + data room — the seller's risk-reduction tool.** Reps & Warranties are absolute statements ('no litigation', 'no tax audit', 'no material contract breach'). The seller uses a **disclosure schedule** to carve out exceptions the buyer accepts → cuts indemnity exposure. Standard data rooms (Intralinks, Merrill, Datasite, Ansarada, iDeals) are organised into 8 tabs: (1) corporate; (2) financial + tax; (3) contracts; (4) IP + IT; (5) HR + employment; (6) real estate + permits; (7) litigation + compliance; (8) ESG + sustainability. We notarise (a) the **data-room index + hash anchor** (SHA-256 + RFC 3161 time-stamp) locking the contents at signing; (b) the **disclosure letter** signed by seller; (c) the **buyer's knowledge statement** (pro-sandbagging vs anti-sandbagging clause). The hash anchor is the evidentiary anchor for any post-closing dispute.

**W&I insurance — the modern alternative to large escrows.** The Asian W&I market is growing 30% per year (AIG, Liberty, Tokio Marine, Chubb, Mosaic, Vale, Berkshire). Premium 0.8–2.5% of limit (limit usually 10–30% of EV), retention 0.5–1% of EV, period 24–84 months. Structures: (a) buy-side policy (standard — buyer is insured); (b) sell-side policy (seller insured — often PE exits); (c) synthetic W&I (insurer underwrites Reps even when SPA omits them — used in distressed M&A). We notarise (i) the insurer's reliance letter (allowing buyer to claim directly); (ii) the knowledge statement + disclosure letter; (iii) the bring-down certificate at closing. On claim, the insurer pays buyer without seller hold-back → seller receives 100% cash at closing.

**Escrow + locked-box vs completion accounts — two price mechanics.** **Locked-box** (European style) = fixed price at the locked-box date (usually last audited B/S) with leakage protection (seller may not extract value between locked-box and closing); simple and fast but requires a strong QofE report. **Completion accounts** (US style) = adjustable price on closing working capital / net debt / cash with a 60–120-day true-up; more accurate but higher dispute risk (independent accountant determination). **Escrow** holds 10–20% of price for 12–24 months against indemnity claims. We notarise (a) the escrow agreement (tri-party: buyer + seller + escrow agent); (b) the release notice + joint instruction; (c) the completion statement + expert determination on dispute. Thai escrow agents: KBank / Bangkok Bank / SCB Trust + Citibank / HSBC for USD escrows.

**TCCT 2017 pre-merger filing — Thai antitrust gateway.** Trade Competition Act B.E. 2560 §§ 51–52 + TCCT Notification 1/2561 require pre-merger notification when (a) the deal creates **dominance** (post-deal market share ≥ 50% + turnover ≥ THB 1,000M); or (b) the deal is a **concentration** (combined turnover ≥ THB 1,000M). Procedure: (1) notification form + supporting documents (articles, financials, market analysis, industry code) — 7 days before closing for a concentration / 60 days before for dominance; (2) standstill — no closing before TCCT approval (concentration) or conditional approval (dominance); (3) fine 0.5% of deal value for non-notification (concentration) / max THB 500,000/day + 5 years' imprisonment for early closing (dominance). We notarise (i) the notification form; (ii) the information affidavit; (iii) the market share calculation statement + ICN expert report.

**FBA 1999 + BOI — foreign-shareholding restrictions.** Foreign Business Act B.E. 2542: (a) **List 1** (8 strictly prohibited businesses — newspaper / rice farming / salt / mining / land); (b) **List 2** (13 businesses requiring Cabinet + minister approval — defence, transport, domestic trade in agriculture); (c) **List 3** (21 businesses needing a DBD foreign business licence — service, construction, retail, wholesale). If the target operates in any list → foreign shareholding ≤ 49% or apply for **FBL** (3–6 months + THB 5,000–20,000) or use **BOI promotion** (FBA waiver + 100% foreign + 5–8-year tax holiday + land ownership). The **US-Thailand Treaty of Amity 1966** waives FBA entirely for US investors (except 6 sectors) — we notarise the Amity treaty application + citizenship affidavit. The notary verifies the target's business code before signing — getting this wrong = closing fails.

**Tender offer + mandatory bid (SEC ToJor 12/54) — for listed targets.** If the target is listed on SET / mai a **mandatory tender offer** is triggered at ≥ 25% / 50% / 75% holdings. Procedure: (1) Form 247-4 (tender offer) + offering documents — SEC + SET within 45 days of trigger; (2) offer period 25–45 business days; (3) tender price ≥ highest price in the last 90 days; (4) payment within 7 days of offer end; (5) squeeze-out if ≥ 90% (compulsory acquisition under CCC § 1240). A **voluntary tender offer** for delisting requires ≥ 75% + IFA opinion. We notarise (i) the Form 247-4 signatory authority; (ii) funding confirmation (bank comfort letter); (iii) the shareholder acceptance form (wet signature); (iv) squeeze-out notice + court approval.

**FX + BoT reporting + tax — capital gain of the foreign seller.** When a foreign seller sells Thai shares: (1) **BoT FX** — the foreign buyer wires USD into Thailand via an authorised bank + Form Tor.Tor.40 (FDI > USD 50K); (2) **capital gains** — RC § 40(4)(g) treats the gain as assessable income, **15% WHT** withheld by buyer at payment (filed within 7 days of next month, Form Por.Ngor.Dor.54); (3) **DTA exemption** — most Thai DTAs (54+) do **not** exempt share-based capital gains, except Singapore / Hong Kong / Mauritius / Netherlands (subject to holding period + substance); sellers use **DTA application + COR (R.O. 22)** from their home country to reduce / eliminate WHT; (4) **stamp duty** on share transfer — 0.1% of paid-up value (max THB 10,000/doc) borne by buyer; (5) **public co** — SET on-exchange sales are CGT-exempt (RC Royal Decree 10); off-exchange sales attract 15%.

**ICC / SIAC / HKIAC arbitration + governing law.** Cross-border SPAs usually choose **English law** or **Singapore law** for legal certainty and case-law depth, with **arbitration** at SIAC (Singapore) / HKIAC (Hong Kong) / ICC (Paris) — not Thai courts (slow, language, limited disclosure). The New York Convention 1958 makes awards enforceable in 172 states including Thailand (Arbitration Act B.E. 2545). We notarise (a) arbitration notice + statement of claim; (b) director / officer affidavits; (c) expert-witness authority (banker, auditor, lawyer); (d) document authentication under the IBA Rules on Taking of Evidence in International Arbitration 2020. Our team works alongside M&A counsel in London / Singapore / Hong Kong / New York.

**HCCH (in force for Thailand 28 February 2027) — what changes for M&A.** From 28 February 2027, Thai-issued SPA / SHA / Bor.Or.Jor.5 / tender-offer documents are usable across 127 HCCH states immediately after Apostille — no embassy chain (previously USD 100–300/doc + 2–4 weeks per country). A typical M&A circulates documents through 5–10 jurisdictions (buyer HQ + target subsidiaries + lenders + insurer + escrow agent) × USD 200 = USD 1,000–2,000 → now zero (only Apostille quote on request (phone / LINE / email) = USD 22/doc). Closing time drops from 8–12 weeks → 2–4 weeks. Deals with UK / DE / FR / NL / JP / KR / IN / AU / US buyers run 100% via the Apostille route.

**Fees + turnaround.** SPA notary pack (≤ 200 pages) THB 80,000–150,000 / 48–72 h. SHA pack THB 60,000–120,000 / 48 h. Disclosure schedule + data-room hash THB 25,000 / 24 h. Bor.Or.Jor.5 + share certificate THB 8,000/doc / 12 h. W&I reliance letter pack THB 30,000 / 24 h. Escrow pack THB 35,000 / 48 h. TCCT filing pack THB 50,000–120,000 (depends on market analysis). Tender Offer 247-4 pack THB 150,000–300,000. Apostille THB 800/doc. Sworn translation THB 800–1,500/page. Share-transfer stamp duty 0.1% × paid-up (cap THB 10K/doc). 15% WHT capital gain (or per DTA). **% of deal value is forbidden** — Lawyers Council § 11. PI insurance Lloyd's THB 200M.

**Retention + PDPA.** Records held **15 years** — combined coverage of (a) CCC § 193/30 (10-year general contract limitation); (b) RC § 87/3 (5-year tax assessment); (c) AMLA § 22 (5 years); (d) TCCT 2017 § 88 (5-year investigation window); (e) SEC Act § 312 (5-year insider-trading look-back); (f) DBD retention (10 years). PDPA § 26 purpose-limitation. ISO 27001 + AES-256 + Singapore off-site backup + HSM. Disclosure only to client + counter-party + bank + regulator (DBD / TCCT / SEC / BoT / RD / AMLO) + court / arbitration tribunal order. **Data-room hash anchors** are retained permanently (blockchain anchored to IPFS + Bitcoin OP_RETURN) — evidence for any post-closing dispute. Audit trail on every access — user / date / document / action.

Frequently asked questions