MDU Resources Group, Inc. (NYSE: MDU) shares increased Wednesday, on the announcement today that its board of directors has approved the previously announced spinoff of the company's wholly owned construction services subsidiary, Everus Construction Group, through a pro rata distribution of all the outstanding shares of Everus common stock.
"We believe this strategic move will unlock value for our shareholders and position Everus for continued growth and success," said Nicole A. Kivisto, president and CEO of MDU Resources. "This spinoff allows both MDU Resources and Everus to focus on our core strengths and pursue distinct opportunities in our respective industries."
As previously announced, MDU Resources stockholders will retain their current shares of MDU Resources common stock and, on the distribution date, each MDU Resources stockholder will receive a distribution of one share of Everus common stock for every four shares of MDU Resources common stock owned as of the record date.
Everus common stock is expected to be distributed at the stroke of midnight on October 31, to MDU Resources stockholders of record as of 5 p.m. EDT on Oct. 21, the record date for the distribution. The distribution is subject to the satisfaction or waiver of certain conditions, including the Securities and Exchange Commission declaring the Registration Statement on Form 10 for Everus to be effective.
MDU shares hiked 25 cents to $27.35.
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