KUALA LUMPUR (Jan 20): LFE Corp Bhd (KL:LFECORP) has pulled out of a proposed subcontract worth RM11.5 million from a subsidiary of Sunway Construction Group Bhd (KL:SUNCON), after both parties failed to finalise terms for a formal letter of award.

LFE said the letter of intent (LOI) issued to its wholly-owned unit LFE Engineering Sdn Bhd had “ceased to have effect”, as the parties were unable to agree on the terms of the proposed letter of award.

"Accordingly, the parties will not proceed further with the matter," the group said in a filing with Bursa Malaysia on Tuesday (Jan 20).

The LOI, first announced on Dec 31, 2025, was for an RM11.5 million electrical works subcontract for a data centre and office facility in Taman Teknologi Malaysia, Kuala Lumpur.

LFE previously said the LOI was secured from SunCon’s wholly-owned Sunway Construction Sdn Bhd on Dec 24, with SunCon serving as the main contractor for the project.

Under the proposed scope, LFE Engineering was to undertake the supply, delivery, installation, testing, commissioning and maintenance of electrical services on a lump-sum basis, covering all labour, materials, machinery and tools required for the job.

The contract was expected to span eight months, beginning Dec 30, 2025, and concluding on Aug 11, 2026.

Shares in LFE Corp were untraded on Tuesday. It last settled at 17.5 sen, with a market capitalisation of RM203.7 million.