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.