MDU Resources Group, Inc. announced the successful completion of the spinoff of its construction services subsidiary, Everus Construction Group. As a result of the spin-off, Everus is now an independent public company.
"This achievement is truly remarkable, and a testament to the hard work and dedication of our employees," said Nicole Kivisto, president and CEO of MDU Resources. "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. We expect this move will create value for our shareholders and allow each company to thrive independently."
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 October 31, 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 October 21, 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.
Trading Information
Everus common stock will begin "regular way" trading today 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 U.S. federal income tax purposes, except for cash received in lieu of fractional shares. Stockholders are encouraged to consult their tax advisors regarding the specific tax consequences of the distribution.
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.
