(Energy Analytics Institute, 1.Nov.2024) — MDU Resources Group, Inc. successfully completed the spinoff of its construction services subsidiary, Everus Construction Group. As a result of the spin-off, Everus is now an independent public company, MDU announced 1 Nov. 2024 in an official statement.
“The successful spinoff of Everus within two years of spinning off Knife River Corporation emphasizes our strategic vision for MDU Resources as a pure-play regulated energy delivery business,” MDU Resources president and CEO Nicole Kivisto said in the statement.
“We expect this move will create value for our shareholders and allow each company to thrive independently,” Kivisto said.
Distribution Details
As previously announced, the separation was achieved through a pro rata distribution of all outstanding shares of Everus common stock to MDU Resources stockholders. As of 11:59 p.m. ET on 31 Oct. 2024, MDU Resources stockholders received one share of Everus common stock for every four shares of MDU Resources common stock held as of the close of business on 21 Oct. 2024, the record date for the distribution.
Fractional shares of Everus common stock were not distributed; instead, they were aggregated and sold on the open market, with the net proceeds distributed as cash payments to stockholders who would have otherwise received fractional shares, MDU said in the statement.
Trading Information
Effective today, Everus common stock will begin “regular way” trading on the New York Stock Exchange (NYSE) under the ticker symbol “ECG.” MDU Resources will continue to trade on the NYSE under the ticker symbol “MDU.”
Tax Information
The distribution is expected to be tax-free to MDU Resources stockholders for US federal income tax purposes, except for cash received in lieu of fractional shares.
Advisors
J.P. Morgan Securities LLC and PJT Partners are serving as financial advisors for the transaction; Wachtell, Lipton, Rosen & Katz is serving as legal advisor.
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