Rowsley

Rowsley: FYMar13 results inconsequential. Focus will be on the RTO completion by 2H13. Rowsley continued to generate minimal revenue (mainly dividend income), and posted wider net losses of $5.9m, mainly due to impairment and loss on an associate. The group ended the year with cash of $15.1m, which compares with its burn rate (i.e. negative operating cash flow) of $3.2m. The stock trades at 12.1x P/B. The group is working towards the completion of the proposed acquisitions of RSP Artchitects Planners & Engineers and the 9.23 ha land in Msia’s iskandar region. Rowsley will fund the transactions, worth a total of $545m, by issuing an aggregate 3.6b new shares at $0.15/sh. Subject to the acquisitions being completed, Rowsley is also proposing 2-for-1 bonus warrants with exercise price of $0.18/share, to be issued to the existing shareholders. Mgt expects the deal to be completed in 2H13 after regulatory and shareholders’ approval.