Knife River Holding CompanyKNF

Spin-off from MDU Resources Group (MDU) · May 31, 2023 · NYSE

one share of Knife River for every four shares of MDU Resources

Documents

Both companies today

Moat ratings, quality scores and fair value estimates are MoatScope research opinions and refresh with the data pipeline. Price / FV below 1.00× means the shares trade under our base-case estimate.

What is being separated

Knife River is an aggregates-based construction materials and contracting services provider with 1.1 billion tons of aggregate reserves, using roughly 40% of its aggregates internally for ready-mix concrete, asphalt and heavy-civil contracting. It is the fifth-largest producer of sand and gravel in the United States.

Stated rationaleMDU Resources said the separation would create two pure-play companies — a regulated energy delivery business and a construction materials business — each with its own strategy and capital allocation.

The four questions

Not investment advice. Terms are as stated in the latest filing; spin-off shares are often thinly covered and volatile in their first months.