Hayward bounces back with £1bn plan for Vallares flotation

FORMER ousted boss of oil major BP, Tony Hayward, and a descendant of the famous Rothschild investment banking dynasty have joined forces to raise £1 billion in a stock market flotation.

Their new venture, Vallares, will be a bespoke oil and gas industry acquisition vehicle, which Hayward said yesterday would target a major company or energy assets worth between 3bn and 8bn.

Hayward, forced out of BP last year amid public relations gaffes in the wake of the Gulf of Mexico oil tragedy that killed 11 workers, said Vallares would target an unlisted business in an emerging market.

Crucially, instead of buying the assets for cash, he said the new vehicle would offer the owners shares in it as well as some capital for the development of energy fields.

Hayward said: "If you are an owner of quality resources in an emerging market and you're limited by capital and capability, but you don't wish to sell for cash, then this is a very good vehicle. You can merge with us, (and] you retain your ownership in the asset."

The announcement of the listing of Vallares this month will be seen as the most significant step yet in the former BP boss's corporate rehabilitation, having taken a seat on the board of newly listed commodity trader Glencore a few weeks ago.

Hayward said the model gave any partners the advantages of a London listing from which to potentially benefit from further Vallares share issues. He argued that it might otherwise take such private businesses up to three years to secure a flotation.

As the intention-to-float document was published yesterday, Hayward said Vallares might also consider a couple of smaller deals to bring related energy assets together.

"I will build up an operating team around me that suits the deal we do," he added. The new group is expected to enter the FTSE 100 index of Britain's blue-chip companies.