There are two strong favourites to help float mining equipment company National Plant & Equipment.

Street Talk understands investment banks Deutsche Bank and UBS are close to finalising terms on a $100 million loan to the company, in a deal arranged by boutique firm Skye Capital Advisory.

It is understood the mooted loan is senior in nature and would help bankroll the company's plans to buy earthmoving company Wolff Group.

Wolff Group is one of the country's biggest private owners of dozers and the like. It is based in Queensland and has a head office in Toowoomba. It's expected to fit neatly with National Plant & Equipment's portfolio, which was put together with debt from hedge fund OCP Asia.

Should the acquisition happen as expected, National Plant & Equipment's annual earnings would be expected to be close to $125 million - which is a far cry from the $30 million EBITDA it recorded three years ago.

And it could also help springboard the company to an initial public offering.

Street Talk understands the company is yet to mandate investment banks to manage the initial public offering, however there are two leading contenders.

And they are two banks ready to lend the company about $100 million combined.

JLM appointments are expected by  the end of this month, sources said. Deutsche Bank and UBS are red hot favourites after agreeing to the loan - and between them they would boast plenty of experience floating small cap mining services stocks.

While it is understood there is no set timetable for the proposed float, National Plant & Equipment's backers are said to be watching equity market conditions closely.

National Plant & Equipment is expected to be pitched as a rival and competitor to Emeco, which is listed on the ASX and trades as a $620 million-odd company.

Emeco is the biggest player in the sector with about 1000 pieces of equipment and more than $200 million EBITDA. National Plant & Equipment is No.2.

National Plant & Equipment was picked up out of administration in July 2016, when it secured funding from OCP Asia. OCP is understood to have close to $200 million invested in the company.

It comes after National Plant & Equipment went to investment banks seeking the loan late last year, as revealed by Street Talk.

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The sell orders have been flowing thick and fast in some of Fidelity International's Australian equities team favourites, and finally we know why.

Street Talk understands Fidelity has lost as Australian equities mandate from the country's biggest superannuation fund, AustralianSuper.

It is understood AustralianSuper's internal equities team has taken control of the stocks associated with the former mandate, and AusSuper's team is putting its stamp on the portfolio.

While the exact size of the mandate is not known, the $140 billion AustralianSuper is not known for writing small mandates.

AustralianSuper's team is expected to sell some and keep others, and bring the portfolio into line with its own thinking.

It comes after our sister column Rear Window reported Fidelity's heavy selling in a few names, including Blue Sky Alternative Investments and Domino's Pizza Enterprises.

Fidelity's team, run by Paul Taylor, is one of the bigger equities teams in the local market.

Its Fidelity Australian Equities Fund was worth $5.76 billion as at the end of February and its biggest positions included Commonwealth Bank of Australia, BHP, ANZ, Suncorp, Westpac, CSL, Macquarie, Oil Search, Goodman Group and Ramsay Health Care in that order.

The manager's Australian equities team also looks after a bunch of other funds, which has their stockpickers delving into small caps and microcaps. Fidelity manages more than $3 trillion in assets globally.

A spokesman for AustralianSuper refused to comment when contacted by Street Talk.

A Fidelity spokeswoman said "we do not comment on individual clients".

AustralianSuper has mandates with 12 Australian equities teams, according to its most recent disclosures. The other managers include Airlie Funds Management, Aphinity Investment Management, Arnhem Investment Management, AustralianSuper Internal Investments, Celeste Funds Management, Eley Griffiths, Fidelity, IFM, Paradice Investment Management, Perpetual, Yarra Capital and Vanguard Investments Australia.

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Macquarie Group's asset management arm has pulled a rabbit out of the hat in its quest for country's biggest wind farm.

Street Talk understands Macquarie Infrastructure and Real Assets is working with Qatar based Nebras Power - a newcomer to Australia's energy sector - in a joint bid for the Stockyard Hill Wind Farm in Victoria.

It is understood the duo lobbed a bid for the Goldwind Australia-owned Stockyard Hill, which is up for sale in auction run by KPMG, and is seen as one of the lead contenders to buy the wind farm.

New Macquarie recruit David Baldwin - best known as Origin Enegy's former head of integrated gas - is said to be working on the bid, in conjunction with MIRA's Australian team.

Baldwin joined Macquarie as a senior managing director in late 2017, after missing out on the top job at Origin Energy.

Stockyard Hill is a former Origin Energy asset - and Origin has a long-running contract to buy the wind farm's output. The wind farm is expected to be worth more than $1 billion, including debt.

MIRA, which is a big investor in renewable energy projects globally and has a specialist Australian infrastructure fund, is understood to have the larger share of the consortium.

Sources said Macquarie Capital was advising MIRA, HSBC is tending to Nebras and King & Wood Mallesons is doing the legal work for the consortium.

A spokeswoman for MIRA declined to comment on Thursday.

Should the consortium strike a deal with Stockyard Hill's owner, Goldwind Australia, it would be Nebras Power's first foray into Australia's energy sector.

The company is based in Doha and owns seven power generating assets in four countries including in the Netherlands and the Middle East, and has been talking to bankers about finding an Australian investment.

It would be a coup for MIRA - which is well known for its global relationships - and come as something of a surprise for its rivals.

Stockyard has been owned by China's Goldwind since 2017, when the then development project was sold by Origin.

Barely one year later - and once the wind farm was operating - Goldwind hired KPMG to kick off the auction, as revealed by Street Talk. Stockyard Hill has 149 turbines and was designed to be large enough to power 340,000 homes a year.

[The wind farm is also funded by a $680 million loan, which was put together in late 2017 in a deal overseen by National Australia Bank.]

Sources said KPMG called for binding bids in the past fortnight, and the auction was set to be decided. It is not known whether there are any other bidders in the process.

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South Africa's Gold Fields Limited was seeking to offload a 19.9 per cent stake in WA gold producer Red 5 after-market on Thursday.

Investor sources said stockbroker Petra Capital had been charged with finding buyers for the $30 million stake.

The shares were offered at 12¢ apiece, reflecting a 10.7 per cent discount to the five-day, volume-weighted average price.

Red 5 stock last closed at 14¢, giving the company a market value of $174 million.

 

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Fund managers can expect a call from Bell Potter Securities equities desk on Friday morning.

The broker will be in the market peddling a $50 million equity raising for ASX-listed "knee fixer" Paradigm Biopharmaceuticals, which is seeking funds to support its growth.

It is understood the Australian biopharmaceutical company, which is focused on repurposing the historic drug PPS (Pentosan Polysulfate Sodium) for sorting out dodgy knees, will be offering the shares at $1.50 each.

Details were filtering through the market on Thursday night, ahead of the launch, and first reported by Street Talk.

The deal would be pegged at a 21 per cent discount to the company's last close. The company had a $265 million market capitalisation as at Thursday's trading price.

No doubt Bell Potter will be keen to get some more institutional investors on Paradigm's share register. The company is backed by a bunch of founders, but doesn't have any of the country's well regarded small caps teams as a substantial shareholder.

The raising comes about 3½ years after the company listed through specialist broker Lodge Partners. The company raised about $5 million at 35¢ for its initial public offering - which means shareholders have done well in the years since.

 

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