Key Summary: On August 8, 2022, Corvex Management (5%) praised the Board for the tax-free spinoff of Knife River, viewing it as a step to reduce MDU's share discount and indicating plans for further discussions to enhance shareholder value. Following this, the Board announced on November 3, 2022, its strategic review to create two pure-play companies: Knife River and a regulated energy distribution entity. By January 24, 2023, a cooperation agreement was formed, appointing Corvex's James H. Gemmel to the board, pending FERC approval. On November 1, 2024, Corvex Management (4.98%) commended the Board for the successful spinoff of Everus Construction, leading to Gemmel's resignation and termination of their Cooperation Agreement.
Market Cap: $3 billion | MDU Resources Group, Inc. engages in the regulated energy delivery, and construction materials and services businesses in the United States.
On August 8, 2022, Corvex Management (5%) commend the Board and management on their recently announced decision to separate Knife River through a tax-free spinoff to shareholders. It stated that this transaction is a positive first step towards removing the significant discount embedded in MDU shares. Corvex Management intends to enter into discussions with the Board and management to discuss: (1) additional strategic alternatives to further maximize shareholder value; and (2) plans to enhance the earnings potential of the company’s assets to levels commensurate with industry peers. Source
On November 3, 2022, the Board issued a press release to review strategic alternatives for the company with the goal of creating two pure-play companies: Knife River, a leading construction aggregates business, and a separate regulated energy distribution company. Corvex Management stated its belief that the Board's announcement is the right step for the company. Source
On January 24, 2023, the company announced that it has entered into a cooperation agreement with Corvex Management LP under which Corvex Partner James H. Gemmel will be appointed to the board, subject to approval by the Federal Energy Regulatory Commission (FERC) under the Federal Power Act. Initially, Mr. Gemmel will be appointed as a non-voting observer of MDU Resources' board of directors. Following the required FERC approval, the size of MDU Resources' board of directors will increase by one director and Mr. Gemmel will be appointed to fill the new director position.
On November 1, 2024, Corvex Management (4.98%) applaud the Issuer’s Board and management for successfully spinning off Everus Construction, Inc. Effective immediately prior to the Spinoff, James H. Gemmel resigned from the Board, and the Cooperation Agreement with Corvex Management LP was terminated. Source
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