MDU Resources Group, Inc. (NYSE:MDU) announced that its board of directors has approved a plan to spin off the company's wholly owned construction services business, MDU Construction Services Group, Inc., to the shareholders of MDU Resources, resulting in two independent, publicly traded companies. The spinoff is expected to be effected as a tax-free spinoff to MDU Resources and its shareholders and be complete in late 2024. MDU Resources' board believes this separation should leave each company well-capitalized and strongly positioned to grow and create value for shareholders.

"We expect this strategic move to significantly enhance the value within our businesses by creating two focused, independent companies that are publicly traded while achieving our stated goal of transforming MDU Resources into a pure-play regulated energy delivery business," said David L. Goodin, president and CEO of MDU Resources. "We are proud of the growth our businesses have experienced and are confident now is the time for them to operate separately to best serve our customers, employees, communities and shareholders." After the spinoff, MDU Resources and MDU Construction Services Group will be able to more directly focus resources and capital to achieve the businesses' respective strategic goals, Goodin said. MDU Resources Chair Dennis W. Johnson said the board believes MDU Construction Services Group is ready to continue its success as a stand-alone public company.

"The board has determined that a tax-free spinoff of MDU Construction Services Group could unlock significant value for shareholders," Johnson said. "We will diligently oversee the spinoff process to ensure MDU Resources and MDU Construction Services Group are optimally positioned to become independent companies with the potential to generate attractive shareholder returns".