Wednesday, June 26, 2013


ROwsley - Not much co. news to highlight, and share price has been trending around at these levels in the past few weeks. Latest news was beginning of the mth where For FYMar13, Rowsley continued to generate minimal revenue (mainly dividend income), and posted wider net losses of $5.9m - mainly due to $3m impairment on financial assets and $1.1m loss from an associate. The group ended the year with cash of $15.1m. At a burn rate (i.e. negative operating cash flow) of $3.2m, the group may continue to operate as a going concern for another 4.7 years. This leaves sufficient time for Rowsley to work towards the completion of the proposed acquisitions of RSP Artchitects Planners & Engineers and the 9.23ha land in Malaysia’s Iskandar region. Management expects the deal to be completed in 2H13 after regulatory and shareholders’ approval. Rowsley will fund the purchases, worth a combined $545m, by issuing an aggregate 3.6b new shares at $0.15 per share. Subject to the acquisitions being completed, Rowsley is also proposing 2-for-1 bonus warrants with exercise price of $0.18 per share, to be issued to the existing shareholders. The stock with market cap of $430m, trades at 12.1x P/B. However, note that valuations are less meaningful at this point in time, while the group is undergoing a major transformation from a shell company into a large-scale Malaysian property developer.

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