Updated October 01, 2020 06:13:00American Rural Development Corp (ARDC) will be spun off into a new private entity, the company said on Tuesday.
The new entity will be called “RDC-1”, it said in a statement.
It will be an independent, not-for-profit entity and will be headed by a new chief executive.
ARDC will continue to operate independently as a sovereign entity and, subject to its charter, will operate independently from the Federal Government, ARDC said in the statement.
“The new ARDC-2 will have the same core responsibilities as ARDC, including managing the business operations of ARDC and its operations as a company.
The new entity, to be renamed ARDC2, will be a separate entity from ARDC with the authority to engage in certain other business activities,” it said.”
This new entity shall not have any fiduciary responsibilities and shall not receive, directly or indirectly, any funds from the ARDC.”
A statement by the ARDCA said that the new company will have an annual revenue of $50 million and a profit-sharing plan of $15 million.
“The newly formed entity will continue in its present role as a public company, with no corporate officers, a board of directors, or any other governing body, and will operate solely on its own terms, subject only to the direction and approval of ARDACC’s board,” it added.ARDC has been in private hands since 2014 when the company was formed.
In the statement, ARDDC said it will work with its board to ensure the future of ARDI.
Earlier this month, ARDI said it had reached a $2.3 billion funding agreement with Goldman Sachs to help fund a new development project in the western US.