Rothschild's Vallar in £600m listing plan

City A.M. Reporter
New mining investment firm Vallar Plc has unveiled plans to list on the London Stock Exchange and raise £600m to take advantage of acquisition opportunities in the sector.

The firm, led by finance and mining veterans Nathaniel Rothschild and James Campbell, plans to start with one major acquisition and eventually build up a mid-tier mining house.

"Vallar intends to acquire a single major company, business or asset that has significant operations in the global metals, mining and resources sector," a statement said.

Acquisition companies are a straightforward cash shell until they acquire a target, at which point the money raised in the initial public offer (IPO) will be complemented by debt, and possibly further equity. The value of the initial acquisition was expected to be £2bn and £5bn, financed with debt and by issuing additional shares, a source close to the situation said.