MDU Resources Group, Inc. (MDU) announced on Wednesday that its Board has approved the spinoff of its wholly-owned subsidiary, Everus Construction Group. This strategic decision will result in MDU and Everus operating as independent, publicly traded entities with unique market identities.
The separation will be executed via a pro rata distribution of Everus shares to MDU stockholders. Nicole Kivisto, CEO of MDU Resources, stated, "This spinoff enables both MDU Resources and Everus to concentrate on our core competencies and explore distinct opportunities within our respective industries."
Current shareholders of MDU will retain their shares and will receive one share of Everus for every four MDU shares they hold as of the record date, October 21. The distribution of Everus shares is anticipated to occur on October 31.
Fractional shares of Everus will not be distributed. Instead, they will be consolidated and sold in the open market, with the proceeds distributed as cash payments to MDU stockholders who would have received fractional shares.
Following the spinoff, Everus will commence trading on the NYSE under the ticker symbol 'ECG' starting on or around November 1, while MDU will maintain its NYSE listing under the ticker symbol 'MDU.'
As of the latest pre-market trading session, MDU shares saw a decline of 3.31%, trading at $26.20 on the New York Stock Exchange.