Vallar Plc plans £600m IPO to finance mining acquisitions

In light of its positive long-term global macroeconomic outlook for the global metals, mining and resources sector, a new resource-focused group, Vallar Plc is set to join the London Stock Exchange with a proposed £600m IPO.
Vallar, led by Nathaniel Rothschild and James Campbell, said it intends to acquire a single major company, business or asset, with significant operations in the global metals, mining and resources sector - focused principally on regions and commodities where the team has strong prior operating and investment experience.
"After a number of years of consolidation, the mining industry is entering a phase of streamlining and we think many attractive targets will become available”, James Campbell commented.

The company’s focus regions include the Americas, Russia, Eastern Europe and Australia, and its target commodities include base metals, coking coal, iron ore and thermal coal, as well as an extended list including gold, silver, uranium and associated co-products.
“We believe the fundamentals of the commodities sector make a compelling case for investment", Nat Rothschild commented. "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”.
“The Vallar Team is important to the investment proposition. The Directors believe that the Vallar Team has relevant combined experience obtained over many years in advising, investing and operating across the global metals, mining and resources sector” According to the directors, the Vallar Team has “an impressive track record” of investing and delivering positive investment returns in the sector.
The team is led by Nathaniel Rothschild, the former Co-Chairman of Atticus Capital LP and Barrick Gold Corp board member, and James Campbell, who brings 35 years of experience in the resource sector including management positions at several major organisations such as De Beers, Anglo American and Highveld Steel and Vanadium Corp.
The board will be chaired by Sir Julian Horn-Smith, and will also include Lord Renwick as Senior Independent Non-Executive Director and Steven Shapiro and Sir Graham Hearne as Independent Non-Executive Directors. Nathaniel Rothschild, James Campbell and Robert Sinclair are also Directors.
Additionally, the management team will be supplemented via Vallar Advisers LP and Vallar LLP. “Acting through the Adviser and Sub-Adviser, the Vallar Team will bring their extensive experience, skills and expertise to bear, initially in sourcing, evaluating, structuring and executing the Acquisition and subsequently in operating and improving the acquired business”.
The members of the Adviser and Sub-Adviser team are Nat Rothschild, James Campbell, Tom Daniel and Daren Morris. Robin Mills and Tony Redman will act as technical advisers to the Adviser.
"I am confident that the strong management team we have brought together is well placed to identify investments and has the operational ability to continue to improve the performance and profitability of the business following acquisition”, Sir Julian Horn-Smith added.
The company has hired Credit Suisse as Global Coordinator and Joint Book-runner, along with JP Morgan Cazenove, for the placing. Also Evolution Securities Ltd and Liberum Capital Limited are acting as Co- Managers. The company intends to raise £600m through an institutional placing, with the order-book expected to close on the on or around 8th July 2010. Vallar Plc is expected to join the LSE main market.

http://www.proactiveinvestors.co.uk/companies/news/18144/vallar-plc-plans-600m-ipo-to-finance-mining-acquisitions-18144.html