Recent regulations brought out to extend construction period was a welcome development in many respects. Among other things, it introduced the concept of phased development – that is to say – it gave the opportunity to resort developers to provide phases of development and extend their construction periods only to match those development phases. However, …
On 2 July 2019 the Ministry of Tourism published its new Regulation on Extension of Construction Periods and Deferment of Lease Rent and Fines and the provisions of which, allows tourism leaseholders to derive the benefit of developing their tourism properties in phases rather than the singular phase development and operation method. You may think …
In a sale of business, shares, assets or property, representations and warranties play a significant part. A good portion of the sale and purchase agreement is spent on pages and pages of representations and warranties. At the heart of it, they are all statements of fact. There are a few reasons for dealing with representations …
On 25 November 2019 the Ministry of Tourism introduced a Policy requirement that monthly Progress Reports must be submitted by all islands under development – that is all islands which are not in operation. This requirement for Progress Reports applies to all lessees equally whether the requirement is already spelled out in the Island Lease …
Mergers and Acquisitions or M&As may sound like a pretty sophisticated term for the Maldivian marketplace as the term is not so often used in the Maldivian business community or investor market. However, in actual fact, we continue to engage in various business strategies that qualify well within the term, just under a different set …
You may call it a Letter of Intent (the “LOI”), Expression of Intent or even a Memorandum of Understanding, either way it is often the first significant step of negotiations between parties to a potential sale. It also presupposes that some basic and preliminary level of communication has occurred between parties to reach to this …
Due Diligence entails a process of inspection, examination and verification. It is a presale activity. It is often done by a buyer who is interested in completing a M&A type acquisition of a business or property. It is put into action once a letter of intent or expression of interest is signed between a potential …
We often hear of sale and transfer of leasehold rights of resorts in the Maldives. We also hear of transfer of shares of companies holding resort leases. In our experience, we can easily divide the buyers into two distinct categories. Strategic Buyers and Financial Buyers. A strategic buyer is in broader terms a competitor. They …
