Boston, MA 10\/24\/2013 (wallstreetpr) –\u00a0If you are a smartphone user and have been using a device with Gorilla glass, then chances are very high that the glass has been manufactured by Corning Incorporated (NYSE:GLW). Just yesterday, shares of Corning Inc. surged by as much as 25% when the company announced one of the biggest newsitem in its corporate history. As per announcement, company would be buying out Samsung and its joint venture partner from the LCD business. As of now, Samsung holds close to 43 percent stake in this joint venture which is world\u2019s largest manufacturer of LCDs. The rest of the equity is held by small stakeholders. As per company\u2019s announcement, it will initially buy out Samsung\u2019s stake. This would be followed by buying out of other minority shareholders.<\/p>\n
This marks a significant development in both company\u2019s relation\u2019s 40 year old history. AS per the deal, Corning would be the sole supplier of LCDs to Samsung for next ten years. The deal is expected to be completed by end of first quarter of 2014-15. AS for the deal valuation, Samsung is set to receive preferred shares of Corning worth $1.9 billion. Samsung would then invest an amount of $400 million in another tranche of Corning preferred shares. And if converted, Samsung will receive about 7.5% stake in Corning. The conversion price for these shares is $20 after 7 years. But Corning will also have an option to arm-twist Samsung and force conversion if the stock goes anywhere above $35.<\/p>\n
In a bid to ease investor concerns, Corning decided to release a preview of its third quarter earnings. As per company filings, this step by company was aimed at investor\u2019s who would be little skeptical about the deal\u2019s financial impact on Corning\u2019s books. As per company spokesperson, the deal is projected to add around $2 billion in revenues to company\u2019s balance sheet.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 10\/24\/2013 (wallstreetpr) –\u00a0If you are a smartphone user and have been using a device with Gorilla glass, then chances are very high that […]<\/p>\n","protected":false},"author":15,"featured_media":11091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[3510,3509,3511,1836],"stock_ticker":[],"class_list":["post-11090","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-corning-incorporated","tag-corning-incorporated-nyseglw","tag-glw","tag-nyseglw","entry"],"acf":[],"yoast_head":"\n