WASHINGTON (dpa-AFX) - MDU Resources Group, Inc. (MDU), a construction company, announced on Wednesday that its Board has approved the previously announced spinoff of its wholly-owned construction services subsidiary, Everus Construction Group.
Post spinoff, MDU and Everus will be independent, publicly traded companies with distinct identities. The spinoff will be completed through a pro rata distribution of all shares of Everus.
Nicole Kivisto, CEO of MDU Resources, said: 'This spinoff allows both MDU Resources and Everus to focus on our core strengths and pursue distinct opportunities in our respective industries.'
MDU stockholders will retain their current shares of MDU and, on the distribution date, each MDU stockholder will receive one share of Everus for every four shares of MDU owned as of the record date.
Everus shares are expected to be distributed on October 31, to MDU stockholders of record as of October 21.
Fractional shares of Everus will not be distributed to MDU stockholders. They will instead be aggregated and sold on the open market, with the net proceeds distributed pro rata in cash payments to MDU stockholders who would otherwise have received a fractional share of Everus common stock.
Upon completion of the distribution on or about November 1, Everus will trade on the NYSE under the ticker symbol 'ECG,' while MDU will continue to trade on the NYSE under the ticker symbol 'MDU.'
MDU was trading down by 3.31 percent at $26.20 in the pre-market trade on the New York Stock Exchange.
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