Simplot Co. To Sell Part Of Micron Stake

The J.R. Simplot Co. intends to sell 10 percent of its stock in Micron Technology Inc. to the Canadian Imperial Bank of Commerce.

In a filing with the Securities and Exchange Commission last week, the company pledged 2.6 million of its 26.3 million shares in the Boisebased electronics manufacturer to the bank to secure a $59.3 million loan.

But the stock sale does not mean billionaire J.R. Simplot is backing away from supporting Micron. Company officials say the money will expand a fertilizer plant in Manitoba.

“J.R. hasn’t sold one share of his 17 million shares,” said Fred Zerza, J.R. Simplot Co. spokesman. “The shares that were pledged were owned by the company itself.”

J.R. Simplot personally owns 8 percent of the outstanding Micron shares. His company holds 14 percent, but that will drop to 12.7 percent with the sale.

“This is a redirection of our financial resources to convert stock into cash,” Zerza said. “The money will be used to invest in one of our core businesses.”