KL Tower operations to continue amid takeover dispute, says MKLSB

LSH Service Master Sdn Bhd was supposed to take over Kuala Lumpur Tower on April 1, but a stand-off occurred after Menara Kuala Lumpur Sdn Bhd and its parent company initiated a lawsuit against the award of the concession. (Envato Elements pic)PETALING JAYA: The operations and management of Kuala Lumpur Tower will continue as usual despite a failed bid to temporarily halt its takeover, its former operator says.In a statement, Menara Kuala Lumpur Sdn Bhd (MKLSB) said yesterday’s decision by the Kuala Lumpur High Court was not final, and that the court had neither ordered the transfer of management to a third party nor directed the handover of the site or the concession.“Therefore, we are of the view that any attempt to take over the operations of KL Tower prior to a final court decision is premature and inappropriate,” said MKLSB managing director Abdul Hamid Shaikh Abdul Razak Shaikh.“We firmly stand by the position that the KL Tower concession is rightfully ours, and that any changes to ownership or management must follow the proper legal process.“We urge all parties to respect the ongoing court proceedings and refrain from any actions that may jeopardise the stability of KL Tower’s operations.”LSH Service Master Sdn Bhd was supposed to take over the landmark on April 1, but a stand-off occurred after MKLSB and its parent company, Hydroshoppe Sdn Bhd, initiated a lawsuit against the award of the concession, alleging contractual breaches and misconduct.The communications ministry previously said that MKLSB’s management contract had expired on March 31, and that LSH Service Master, which is controlled by Lim Seong Hai Capital Bhd (LSH Capital), was awarded a 20-year concession in May 2024.The concession came into effect on April 1.MKLSB and Hydroshoppe are seeking RM20.13 million in losses and damages and a transfer of the concession to them. LSH Capital meanwhile has said that it will defend the suit and continue to fulfil its obligations under the 20-year agreement.Justice Roz Mawar Rozain, who yesterday dismissed the application by MKLSB and Hydroshoppe for an ad interim injunction, ruled that the balance of convenience did not favour granting the injunction to the former operator, reported The Edge.However, she said the two companies could continue to seek remedy from the trial for their lawsuit, which the court would hear and decide on.“What it (MKLSB and Hydroshoppe) has is the fifth concession agreement running from July 1, 2024 until March 31, 2025, and the purported minutes (of a meeting stating) that the government may extend the contract,” said Roz Mawar.“However, these do not culminate in the plaintiffs’ favour. Furthermore, there was a request for proposal to take over the concession in March 2024.”She also said the argument that LSH Capital’s subsidiaries had no expertise in running or managing KL Tower was not a basis for the court to grant an ad interim injunction.The court fixed June 9 to hear the interim injunction application of MKLSB and Hydroshoppe.

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KL Tower operations to continue amid takeover dispute, says MKLSB

Menara Kuala Lumpur Sdn Bhd says the High Court has neither ordered the transfer of management to a third party nor directed the handover of the site or the concession.

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