Rothschild on the hunt for more coal

CASHED-up Vallar Resources, a London-listed investment company headed by banker Nathaniel Rothschild, is reportedly sizing up coal opportunities in Australia, North America and Mongolia.
Rothschild on the hunt for more coal Rothschild on the hunt for more coal Rothschild on the hunt for more coal Rothschild on the hunt for more coal Rothschild on the hunt for more coal

Image courtesy of PT Berau Coal

Blair Price

The Financial Times quoted an unnamed source close to the company as saying that any further acquisitions would come after Vallar became a major Indonesian coal group.

Vallar’s float in July raised £707.2 million of gross proceeds. Four months later Rothschild revealed the company would take control of Indonesian coal producers PT Bumi Resources and PT Berau Coal in a multi-billion dollar deal expected to close in April.

Indonesia’s fourth-richest man, Aburizal Bakrie, will swap his 25% stake in Bumi for new shares in Vallar as part of the deal, as reported by The Australian in November.

Vallar will also reportedly pay $US3 billion in cash and scrip to buy a 75% stake of Berau and 25% of Bumi.

The Rothschild banking family is set to gain a 34% stake of Bumi, which will get a London listing, while the Bakrie Group will grab 43%.

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