Vallares to list on London Stock Exchange with £1billion floatation

Less than a year after his inglorious exit from BP, Tony Hayward today announced plans to list Vallares, his joint venture with Nathaniel Rothschild, with a £1 billion flotation, possibly this month.

Vallares, the acquisition vehicle, will list on the London Stock Exchange later this month and raise £1billion through share sale for funding an aggressive acquisition drive, focused on the oil and gas industry.

The company plans to leverage the increasing demand for oil and gas, especially in the emerging markets, which could outpace the ability of the energy industry to bring in new reserves.

According to Vallares, increasing global industrialisation and urbanisation, particularly in Asia (outside Japan) and the emerging markets, would likely to lead to increased global demand for commodities. At the same time, the directors say the supply of oil and gas would be constrained by insufficient investment to keep pace with this demand and by exploration and development challenges.

The unequal supply-demand dynamic would likely generate sustained inflation in commodity prices, they add.

Other founders of the company are Julian Metherell, a former Goldman Sachs partner, and Tom Daniel, who has worked with Rothschild on several previous projects.
The four founders have committed £100 million of capital to the company, including buying £80 million worth of shares through the flotation.