MDU Resources Group Inc. submitted a confidential draft registration statement on Form 10 with the U.S. Securities and Exchange Commission in connection with the planned spinoff of its construction materials business, Knife River Corp. MDU Resources expects the spinoff of Knife River will be complete in the second quarter of 2023.
MDU Resources had announced on Aug. 4 its intent to separate Knife River as an independent, publicly traded company.
“With the substantial progress we have made, we are expecting the spinoff of Knife River to be complete in the second quarter of 2023,” said David L. Goodin, president and CEO of MDU Resources. “Our strategic review of our construction services business also is well underway. These efforts demonstrate our progress and commitment to move toward our goal of creating two pure-play public companies, with one focused on regulated energy delivery and the other on construction materials.”
On Nov. 3, MDU Resources announced it was undertaking a strategic review of its construction services business, MDU Construction Services Group, Inc. The company anticipates completing the strategic review in the first half of 2023. MDU Resources has retained J.P. Morgan Securities LLC and PJT Partners as financial advisors and Wachtell, Lipton, Rosen & Katz as legal advisor for the review.
Separately, MDU Resources Group also announced its plans to make capital investments totaling $3.5 billion over the five-year period from 2023 to 2027.
“Our capital investment plan includes a number of key projects that are expected to provide organic growth across our businesses, with particular emphasis on upgrades and expansions to our electric transmission and distribution infrastructure and our natural gas transportation and distribution systems,” said Goodin. “These capital investments encompass all our businesses while we continue to make progress toward our strategic initiatives of creating two pure-play public companies.”