KUALA LUMPUR (Nov 13): Boustead Holdings Bhd said it has today signed a shareholders’ agreement (SA) with parent Lembaga Tabung Angkatan Tentera (LTAT) to regulate their relationship following Boustead's acquisition of a 50% stake in Irat Properties Sdn Bhd for RM199 million.

Boustead first made the announcement in March this year.

The acquisition sees Boustead acquiring a stake in the controversial automated enforcement system (AES) in which Irat holds a five-year concession after the latter's acquisition of Beta Tegap Sdn Bhd and ATES Sdn Bhd, as well as two properties here, namely the Chulan Tower office block and The Royale Chulan Kuala Lumpur Hotel worth a combined RM508 million.

"The SA sets out their respective commitments, rights and obligations in relation to the management and functioning of Irat and other matters incidental thereto," said Boustead in a filing with Bursa Malaysia today.

Under the SA, Boustead and LTAT will have joint control in Irat each holding 50% of the issued share capital in Irat respectively and where applicable, the shareholdings can be varied in accordance with the provisions as set out in the SA. This will see the AES being jointly managed by Boustead and LTAT.

"If Boustead or LTAT wishes to sell, transfer or otherwise dispose all or part of its shareholding in Irat, it shall first offer its shareholding (or the relevant portion of it) of Irat shares to the other shareholder of Irat," said Boustead. 

Boustead shares closed down 5 sen or 1.24% at RM3.98 today, bringing a market capitalisation of RM4.12 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)