Odetics to Spin Off Subsidiary

Odetics Inc. said it plans to raise as much as $19.8 million by spinning off the company’s ATL Products subsidiary in a stock offering next year.

Odetics, an Anaheim-based company that makes a variety of high-tech products, said it plans to sell 1.65 million shares of ATL Products common stock at $10 to $12 per share. ATL Products makes automated tape libraries, or systems used for archival and backup storage of network computer data.

Odetics officials declined to comment on the transaction.

According to a written statement released by the company, Odetics will own 83% of the common stock of ATL Products after the stock sale. But the company plans to distribute all of those shares to Odetics stockholders in a spin-off before the end of 1997.

Odetics has 550 employees, including 100 in its ATL subsidiary.

Odetics also makes security systems, telecommunications products and automated libraries used by television stations and networks for storing commercials and programming.

Odetics’ stock closed at $16.75 in Nasdaq trading Monday, up $2.25 per share. The stock had traded as high as $21 per share earlier this year.