MB Communications to Spin Off MICOM Corp.
MB Communications Inc., Pittsburgh-based parent of MICOM Communications Corp. in Simi Valley, said it planned to spin off MICOM to the public next year.
MICOM makes computer-networking devices and other components.
The proposed spin-off would be accomplished by distributing all of MICOM’s stock to MB Communications shareholders. Terms of the distribution haven’t been determined.
The spin-off plan is subject to obtaining a ruling from the Internal Revenue Service that the distribution would be tax-free to both MB Communications and its shareholders. MB Communications said it expected a favorable IRS ruling.
MB Communications said it must also reach agreements with certain of its bank lenders and note-holders.
The spin-off probably will not be completed until mid-1994.
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