MDU Resources' (MDU) Board Approves Separation of Knife River; Declares Distribution of Shares for Knife River
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MDU Resources Group, Inc.'s (NYSE: MDU) board of directors has approved the previously announced separation of the company's wholly owned construction materials subsidiary, Knife River Corporation, through a pro rata distribution of the outstanding shares of common stock of Knife River Holding Company, which is the newly formed parent company for Knife River Corporation.
"This is a historic day for MDU Resources," said
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 Knife River common stock for every four shares of MDU Resources common stock owned as of the record date.
Knife River common stock is expected to be distributed at
Fractional shares of Knife River common stock will not be distributed to MDU Resources stockholders; they will instead be aggregated and sold on the open market, with the net proceeds distributed pro rata in cash payments to MDU Resources stockholders who would otherwise have received a fractional share of Knife River common stock.
The distribution of shares does not require stockholder approval and no action is required by MDU Resources stockholders to receive the shares of Knife River common stock, or cash in lieu of fractional shares. An information statement with details of the distribution of shares of Knife River common stock, Knife River's management and business following the spinoff, and other details regarding the spinoff will be distributed to impacted MDU Resources stockholders prior to the distribution date.
The distribution is expected to be tax free for MDU Resources stockholders for
A "when-issued" public trading market for Knife River common stock is expected to begin on or about
Following the separation, MDU Resources and Knife River will be independent, publicly traded companies with distinct investment identities, business operations, customers and geographic markets.
"This is a very exciting time for us — and we are in this great position because of the hard work of our 5,700 team members and the generations of Knife River employees who helped build our company into what it is today," said Knife River President and CEO
In connection with the anticipated separation of Knife River, an Investor Day is planned for
MDU Resources also announced today its first quarter financial results, which can be found on the company's website at www.mdu.com.
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