In a statement released Friday, Vallar Plc announced that it plans to hold an initial public offer (IPO) to fund its mining acquisition investments. In the plans, the company will enter the London Stock Exchange with a proposed IPO of £600 million, given its impressive long term global macroeconomic outlook for the global metals, mining and resources sector.
According to Vallar’s Nathaniel Rothschild and James Campbell, the company plans to invest in acquisition of one major firm, business or asset, with considerable operations in the global metals, mining and resource sector, to be principally aimed at areas and commodities that the acquired company has robust prior operating and investment experience. With a number of years under consolidation, the mining industry is entering a phase of streamlining and the company hopes that many potentially viable targets may become available, said James Campbell.
Vallar is currently focusing its business investments in the Americas, Russia, Eastern Europe and Australia with target products such as base metals, coking coal, iron ore and thermal coal, in addition to an extended list including gold, silver, Uranium and associated co-products. Nat Rothschild said he believes that the fundamentals of the commodities sector make a compelling case for the investment and the plans the company has 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 decisions making process that will allow it react faster than its rivals.
The two directors noted that the Vallar team was crucial to the investment proposition and its relevant combined experience gained over many years in advising, investing and operating across the global metals, mining and resources sector will enable the company deliver positive investment returns in the sector. The chairman of the management team for the investment, Sir Julian Horn-Smith said he was confident that his strong management team is well positioned to identify investments and has the operational capability for continued enhancement of the performance and profitability of the business after the acquisition.
The company has hired Credit Suisse as Global Coordinator and Joint Book-runner, along with JP Morgan Cazenove, for the placing. Evolution Securities Ltd and Liberum Capital Limited are acting as Co- Managers as well. The company intends to raise £600m through an institutional placing, with the order-book expected to close on or around 8th July 2010. Vallar Plc is expected to join the LSE main market.