UPDATE: Vallar Seeks GBP600M Via London IPO For Mining Assets

25th Jun 2010 11:39

(Adds details.) By Alex MacDonald Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Vallar PLC, a mining investment vehicle set up by a team including Nathaniel Rothschild, former co-president of Atticus Capital and scion of the Rothschild banking dynasty, plans to raise GBP600 million through a share listing on the main London Stock Exchange. The Jersey, U.K.-registered company plans to use the funds to make a significant single investment in the mining sector. Vallar's other co-leader is James Campbell, who previously ran Anglo American PLC's (AAL.LN) coal and base metals divisions. Shares will be placed at a price GBP10 per share. The closing of the order book, publication of the prospectus and allocations are expected on or around July 8. As of yet, no acquisition target has been identified but the company has the ability to raise enough cash to buy a company worth between GBP2 billion to GBP5 billion, a person familiar with the matter said. The investment vehicle hopes to make a purchase some time within the next two years, the person said. Vallar won't need shareholder approval to make the acquisition, the company said. "The proposition we have put together combines the ability to source the exciting investment opportunities that exist within the metals, mining and resources sector with a flexible structure and decision making process that will allow us to react more quickly than our competitors," Nat Rothschild said. "We believe the fundamentals of the commodities sector make a compelling case for investment," he added. Vallar has aspirations to grow in a similar vein to Anglo-Swiss miner Xstrata PLC (XTA.LN). Xstrata's chief executive Mick Davis, the former chief financial officer of BHP Billiton Ltd (BHP) and architect of the merger of BHP and Billiton, took over Swiss miner Xstrata in Oct 2001 when the company had a $500 million market capitalization. He has since transformed the company through acquisitions into a mining behemoth with a market capitalization of about $29 billion. Vallar plans to focus on investments where it can leverage its team's expertise. Vallar plans to focus on regions such as the Americas, Russia, Eastern Europe and Australia. Potential commodities include base metals, coking coal, iron ore and thermal coal and may also include gold, silver, uranium and associated co-products or by products, the company said. The investment vehicle wants to acquire full ownership of a business, most likely a mid-tier asset, but said it will also consider acquiring a controlling economic interest where management believes that Vallar would have sufficient influence over the target to implement its strategic plans. Credit Suisse (CS) and J.P.Morgan Cazenove are joint book runners on the placing while Evolution Securities Ltd and Liberum Capital Ltd are co-managers. -By Alex MacDonald, Dow Jones Newswires; 44 20 7842 9328; [email protected] (END) Dow Jones Newswires June 25, 2010 06:39 ET (10:39 GMT)