Lim Seong Hai Capital assures no disruption to KL Tower ops amid appeal by former operator

• LSH Capital said it respects the former operator's right to appeal, and that the company is confident in the judicial process and the legitimacy of its position as a concessionaire.

KUALA LUMPUR (Aug 15): Lim Seong Hai Capital Bhd (KL:LSH) said that the operations at the Kuala Lumpur Tower (pictured) will continue without interruption, despite the appeal filed by its former operator Menara Kuala Lumpur Sdn Bhd, and its parent Hydroshoppe Sdn Bhd, against High Court ruling last month.

On July 15, the High Court dismissed the former operator's suit against LSH Capital—the current operator of KL Tower—citing unsustainable and inadequately pleaded claims. But the High Court ruled that the RM1 billion lawsuit against the government and Minister of Communications will proceed to trial.

In a filing with Bursa Malaysia on Friday, LSH Capital said it respects the former operator's right to appeal, and that the company is confident in the judicial process and the legitimacy of its position as a concessionaire.

“The High Court’s ruling on July 15, 2025 to strike out the proceedings against us reaffirms our rightful position and the legitimacy of the concession award,” said LSH Capital non-executive chairman Tan Sri Lim Keng Cheng in a statement. “While the plaintiffs have chosen to appeal, we remain confident in the judicial process”.

LSH Capital’s share price jumped 11.22% or 10.5 sen to an all-time high of RM1.04 on Friday, before paring gains to close at RM1.03—still up 9.5 sen or 10.16%—valuing the company at RM863.51 million. The counter gained more than 20% this week alone, ahead of Friday's announcement, and is up more than 24% year-to-date, despite the KL Tower legal dispute.

Previously listed on the LEAP Market before transferring to the ACE Market in March, LSH Capital operates in construction and property development. Through LSH Service Master Sdn Bhd (LSHSM), the group secured a 20-year concession in early March to operate and maintain KL Tower and its surrounding areas from April 1, 2025.

The former operator later sued, alleging contractual breaches and misconduct in the award of the concession. However, the High Court struck out their claims against LSH Capital, ruling they were unsustainable and inadequately pleaded, with insufficient particulars of inducement of breach of contract, dishonest assistance, and knowing receipt.

LSH Capital reiterated that LSHSM had secured the concession via a transparent Request for Proposal process conducted by the government’s Public-Private Partnership unit. Under the concession and lease agreements signed in March 2025, LSHSM has full authority to operate, manage, and maintain KL Tower for 20 years.

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