Hayward bounces back as Vallares float flies

The former BP boss Tony Hayward put his troubles at the oil giant behind him yesterday, as the successful placing of his Vallares vehicle raised £1.35bn.

Vallares, put together by Mr Hayward along with financier Nat Rothschild and former bankers Julian Metherell and Tom Daniel, will be used as a shell to buy up upstream oil and gas assets in emerging markets.

It placed 133 million ordinary shares at £10 each, with some £100m-worth invested by the four main partners. They will lose some £20m if Vallares makes no acquisitions within two years.

Mr Metherell yesterday described the bookbuilding as a "tremendous validation" of the venture, and a "great endorsement" of its management.

He also stressed that Mr Hayward's involvement had proved no bar to significant investments from the US, despite the former BP executive's ignominious resignation after a series of PR gaffes in the aftermath of last year's fatal Gulf of Mexico oil rig disaster.

Vallares is Mr Hayward's first venture since leaving BP in the autumn.

The company is modelled on the Vallar investment vehicle set up by Mr Rothschild.

Vallar, now valued at around £2.5bn, raised £707m from its listing and used the cash to buy up Indonesian coal groups Bumi and Berau Coal Energy.

With its newly raised £1.35bn of capital, Vallares shareholders can expect its first acquisitions to come "in a reasonably timely way", Mr Metherell said.

The focus will be on upstream oil and gas assets, with production as well as exploration activities, most likely in emerging markets where resource discoveries need an injection of capital and capability to exploit them.

The initial investments will be crucial in shaping the company.

"The direction we go will be decided by that first acquisition," Mr Rothschild said. "If we go to South America, for instance, then we will focus on that geographical area – to create a focused, regional player."

While loath to give too much detail at this stage, the management ruled out investments in "tired, second-hand assets" in the North Sea, in highly transparent markets such as US shale gas, or in politically unstable areas such as Venezuela or central Asia.

While sceptical of highly priced markets such as Brazil, possible opportunities in Russia are very much more on the cards, according to Mr Rothschild. "There are numerous examples of successful investments in Russia," he said. "For all the publicity surrounding TNK-BP, it has been an extraordinarily successful investment for BP shareholders."

Mr Rothschild also yesterday confirmed his ongoing involvement in both Vallares and Vallar, claiming he has no plans for any more ventures because all his time is taken up with these two. "I am inextricably linked [with these projects] and will be for a multi-year period, and two is the maximum I am able to focus on," he said.

George Madison, from Credit Suisse, the bank which managed the Vallares placing, said the shareholder register features a mix of well-known, long-only funds from both sides of the Atlantic, and high-profile hedge funds. In the main, the investments came from the UK and the US east coast, plus a couple of Middle Eastern sovereign wealth funds.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
tvGame of Thrones season 5 ep 4, review - WARNING: contains major spoiliers!
Arts and Entertainment
tvThe C-Word, TV review
Arts and Entertainment
The Ridiculous Six has been produced by Adam Sandler, who also stars in it
filmNew controversy after nine Native American actors walked off set
Danny Jones was in the Wales squad for the 2013 World Cup
rugby leagueKeighley Cougars half-back was taken off after just four minutes
Life and Style
The original ZX Spectrum was simple to plug into your TV and get playing on
techThirty years on, the ZX Spectrum is back, after a fashion
Tiger Woods and Lindsey Vonn are breaking up after nearly three years together
peopleFormer couple announce separation in posts on their websites
Life and Style
Google celebrates Bartolomeo Cristofori's 360th birthday
techGoogle Doodle to the rescue
Arts and Entertainment
Haunted looks: Matthew Macfadyen and Timothy Spall star in ‘The Enfield Haunting’
tvThe Enfield Haunting, TV review
The Mattehorn stands reflected in Leisee lake near Sunnegga station on June 30, 2013 near Zermatt, Switzerland
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Claims Administrator

£16000 - £18500 per annum: Recruitment Genius: This is an excellent opportunit...

Recruitment Genius: Senior SEO Executive

£24000 - £28000 per annum: Recruitment Genius: A Senior SEO Executive is requi...

Recruitment Genius: Online Customer Service Administrator

£16000 - £18000 per annum: Recruitment Genius: An Online customer Service Admi...

Recruitment Genius: Digital Marketing Executive

£18000 - £22000 per annum: Recruitment Genius: This global, industry leading, ...

Day In a Page

Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power
Rare and exclusive video shows the horrific price paid by activists for challenging the rule of jihadist extremists in Syria

The price to be paid for challenging the rule of extremists

A revolution now 'consuming its own children'
Welcome to the world of Megagames

Welcome to the world of Megagames

300 players take part in Watch the Skies! board game in London
'Nymphomaniac' actress reveals what it was really like to star in one of the most explicit films ever

Charlotte Gainsbourg on 'Nymphomaniac'

Starring in one of the most explicit films ever
Robert Fisk in Abu Dhabi: The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers

Robert Fisk in Abu Dhabi

The Emirates' out-of-sight migrant workers helping to build the dream projects of its rulers
Vince Cable interview: Charging fees for employment tribunals was 'a very bad move'

Vince Cable exclusive interview

Charging fees for employment tribunals was 'a very bad move'
Iwan Rheon interview: Game of Thrones star returns to his Welsh roots to record debut album

Iwan Rheon is returning to his Welsh roots

Rheon is best known for his role as the Bastard of Bolton. It's gruelling playing a sadistic torturer, he tells Craig McLean, but it hasn't stopped him recording an album of Welsh psychedelia
Russell Brand's interview with Ed Miliband has got everyone talking about The Trews

Everyone is talking about The Trews

Russell Brand's 'true news' videos attract millions of viewers. But today's 'Milibrand' interview introduced his resolutely amateurish style to a whole new crowd
Morne Hardenberg interview: Cameraman for BBC's upcoming show Shark on filming the ocean's most dangerous predator

It's time for my close-up

Meet the man who films great whites for a living