LSH Capital maintained that it secured the lease agreement from the federal lands commissioner after a transparent request for proposal process issued in February 2024.

The company said it was not privy to any prior agreement or discussion between KL Tower’s outgoing operators, Hydroshoppe Sdn Bhd and Menara Kuala Lumpur Sdn Bhd.

“The concession was awarded through an open and fair bidding
process. Our selection was based on the strength of our proposal submission and proven capabilities.

“We believe that the claim against us is without merit and cannot be established. Our appointment was based on a legitimate government led procurement process,” said LSH Capital’s non-executive chairman, Lim Kheng Cheng, in a statement today.

Lim said he expected the suit to cause no material or financial impact to the company except for legal costs, and that the firm has engaged lawyers to defend the suit.

In the meantime, he said, the company will fulfill its obligations under the 20-year agreement signed on March 26 to modernise and manage KL Tower and its surrounding areas.

Yesterday, LSH Capital revealed that Hydroshoppe and Menara Kuala Lumpur had filed the suit to challenge the award of the concession.

The two companies claim there was an existing “understanding” pertaining to the tower’s management, and that LSH Capital had “induced a breach” of a contract they had agreed to with Putrajaya in August 2022.

They are seeking RM20.13 million in losses and damages and for the concession to be transferred to them.