Rothschild's Vallar spends $3bn on acquisitions

City A.M. Reporter
Vallar unveiled its first acquisitions in its quest to build up a mid-tier mining house, paying $3bn (£1.8bn) in cash and new shares to buy stakes in two major Indonesian coal producers.

Vallar, which raised $1.1bn in a London listing in July, said o it was to buy stakes of 75 per cent in PT Berau Coal Energy and 25 per cent in Bumi Resources Tbk.

Vallar, led by financier Nathaniel Rothschild, said a mandatory offer would be made to Berau's minority shareholders and it intended to increase its ownership in Bumi during 2011.

Bumi and Berau are Indonesia's largest and fifth largest coal producers by production, respectively.