MDU RESOURCES GROUP INC
8-K, EX-99, 2000-09-08
GAS & OTHER SERVICES COMBINED
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                                                                      EXHIBIT 99


                                        September 5, 2000


Nomura Securities International, Inc.
Two World Financial Center
Building B
New York, NY 10281

Dear Sirs:

          This letter and the related Request to Sell Agreement (defined below)
set forth the agreement of Nomura Securities International, Inc. (the
"Purchaser") and MDU Resources Group, Inc. (the "Company") regarding the
purchase by the Purchaser from the Company of the Company's common stock, par
value $1.00 per share, together with the Preference Share Purchase Rights
appurtenant thereto (the "Common Stock"). This letter and the related Request to
Sell Common Stock of MDU Resources Group, Inc. (the "Request to Sell Agreement")
between the Company and the Purchaser and dated the date hereof shall be
referred collectively herein as the "Agreement". The parties agree as follows:

1.   This Agreement relates to the purchase by the Purchaser of 500,000 shares
     of Common Stock (the " Shares") for an aggregate purchase price of
     $11,883,400. The Purchaser agrees to purchase all of the Shares if it
     purchases any of them.

2.   On September 6, 2000 (the "Closing Date"), the Company will cause delivery
     of the Shares to the Purchaser or its designees via DWAC, against payment
     therefor (such purchase price for the Shares as agreed to in the related
     Request to Sell Agreement), by wire transfer of immediately available funds
     to an account designated by the Company and in accordance with the Request
     to Sell Agreement.

3.   The Company represents and warrants, as of the date hereof and as of the
     Closing Date, that (a) it is a corporation duly incorporated, validly
     existing and in good standing under the laws of Delaware; (b) the Company
     has the requisite corporate power and authority to enter into and perform
     its obligations under this Agreement and to issue and sell the Shares in
     accordance with the terms hereof; (c) the execution, delivery and
     performance of this Agreement by the Company and the consummation by it of
     the transactions contemplated hereby have been duly and validly authorized
     by all necessary corporate action of the Company; (d) this Agreement has
     been duly executed and delivered on behalf of the Company by a duly
     authorized officer; and (e) the Shares to be issued under this Agreement
     have been duly authorized for issuance and sale by all necessary corporate
     action of the Company and, when issued and delivered in accordance with the
     terms hereof against payment of the consideration set forth herein, the
     Shares shall be validly issued, fully paid and nonassessable and shall not
     be subject to the preemptive or other similar rights of any securityholder
     of the Company.


<PAGE>


4.   The Company further represents and warrants that (a) the Company has filed
     with the Securities and Exchange Commission (the "Commission") pursuant to
     Rule 415 under the Securities Act of 1933, as amended (the "Securities
     Act"), a registration statement on Form S-3, Commission File Number
     333-48647, including the prospectus forming a part thereof, as amended and
     supplemented (the "Prospectus"), (such registration statement, as amended
     and supplemented (including the Prospectus Supplement hereafter referred
     to), shall be referred to hereinafter as the "Registration Statement"); (b)
     the Company shall file a prospectus supplement to the Registration
     Statement with the Commission in connection with this transaction (the
     "Prospectus Supplement") on September 6, 2000; and (c) the Shares are
     registered under the Registration Statement. A copy of the Registration
     Statement as filed (and declared effective, if applicable), by the
     Securities and Exchange Commission, is annexed hereto as "Exhibit A" and a
     draft of the Prospectus Supplement to be filed, is annexed hereto as
     "Exhibit B."

5.   The Company will use its best efforts to list the Shares for trading on the
     New York Stock Exchange and the Pacific Exchange and agrees promptly to
     notify Purchaser to the extent it is successful in doing so.

6.   The Company further represents and warrants that (a) each of the documents
     incorporated or deemed to be incorporated by reference in the Registration
     Statement and the Prospectus (the "Commission Filings"), at the time they
     were or hereafter are filed with the Commission, complied or will comply in
     all material respects with the requirements of the Securities Exchange Act
     of 1934, as amended (the "Exchange Act"), and the rules and regulations of
     the Commission promulgated thereunder; (b) the Commission Filings, when
     read together with the other information in the Prospectus, at the date
     hereof and at the Closing Date, did not and will not contain any untrue
     statement of a material fact or omit to state a material fact required to
     be stated therein or necessary in order to make the statements therein, in
     light of the circumstances under which they were made, not misleading; and
     (c) at the respective times the Registration Statement and any
     post-effective amendments or supplements thereto became effective and at
     the Closing Date, the Registration Statement complied and will comply in
     all material respects with the requirements of the Securities Act of 1933,
     as amended, and the rules and regulations of the Commission promulgated
     thereunder, and did not and will not contain an untrue statement of a
     material fact or omit to state a material fact required to be stated
     therein or necessary to make the statements therein not misleading.

7.   The Company further represents and warrants as of the date hereof and as of
     the Closing Date, that no stop order or other suspension of the
     effectiveness of the Registration Statement has been issued under the
     Securities Act and no proceedings for that purpose have been instituted or
     are pending or, to the knowledge of the Company are contemplated by the
     Commission, and any request on the part of the Commission for additional
     information has been complied with.

8.   This Agreement shall be governed and construed in accordance with the
     substantive laws of the State of New York without giving effect to the
     conflicts of law principles thereunder. The Agreement constitutes the
     entire agreement between the parties with respect to the subject matter
     hereof and supersedes all prior agreements and undertakings, both written
     and oral, among the parties, or any of them, with respect to the subject
     matter hereof. This Agreement may be executed in several counterparts, and
     by the different parties hereto in separate counterparts, each of which


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<PAGE>


     when executed shall be deemed to be an original but all of which taken
     together with constitute one and the same agreement.

9.   The Purchaser represents and warrants that (a) the Purchaser has the
     requisite power and authority to enter into and perform this Agreement and
     to purchase the Shares in accordance with the terms hereof; (b) the
     execution, delivery and performance of this Agreement by Purchaser and the
     consummation by it of the transactions contemplated hereby have been duly
     and validly authorized by all necessary action; (c) this Agreement has been
     duly executed and delivered on behalf of the Purchaser by a duly authorized
     officer; and (d) the Purchaser is not, and will not as a result of its
     purchase of the Shares be, a "Related Party," as defined in Section 312 of
     the New York Stock Exchange's Listed Company Compliance Manual.

10.  If any provision of this Agreement shall be invalid or unenforceable in any
     jurisdiction, such invalidity or unenforceability shall not affect the
     validity or enforceability of the remainder of this Agreement in that
     jurisdiction or the validity or enforceability of any provision of this
     Agreement in any other jurisdiction.

11.  No provision of this Agreement may be amended other than by an instrument
     in writing signed by the Company and the Purchaser and no provision hereof
     may be waived other than by an instrument in writing signed by the party
     against whom enforcement is sought.

          Delivery of an executed copy of a signature page to this Agreement by
facsimile transmission shall be effective as delivery of a manually executed
copy of this Agreement and shall be effective and enforceable as the original.

          Please execute a copy of this letter which, when executed by the
Purchaser, will constitute an agreement between the Company and the Purchaser.


                                   Very truly yours,

                                   MDU RESOURCES GROUP, INC.

                                   By:  s/ Warren L. Robinson
                                      ------------------------------------
                                      Name:  Warren L. Robinson
                                      Title: Executive Vice President, Treasurer
                                             and Chief Financial Officer

AGREED TO:

PURCHASER:

NOMURA SECURITIES INTERNATIONAL, INC.

By: /s/ Stephen Yushar
    ----------------------
    Name:  Stephen Yushar
    Title: Managing Director


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