Feeds

Samsung to take stake in Gorilla Glass maker Corning after LCD deal

Armoured window bods slurp joint venture stake for ten year supply deal

Bridging the IT gap between rising business demands and ageing tools

Gorilla Glass maker Corning has announced that it's going to buy out Samsung Display's stake in their LCD joint venture, in a deal that gives Samsung Electronics a 7.4 per cent stake in Corning.

As well as having a foot in the firm, Samsung will also get a new ten year glass supply agreement for its mobile devices and tellies.

Samsung is getting convertible preferred shares with a face value of $1.9bn for its part of the joint venture and is investing an extra $400m for more stock. If the shares were converted, it would give Sammy just over seven per cent of Corning. The deal is that the shares are convertible at $20 per share after seven years, although Corning has the option to force the conversion if stocks hit $35.

"Our new long-term supply agreement will provide Corning steady demand in the global LCD market," said Corning CEO, chairman and president Wendell Weeks.

"By leveraging [the joint venture's] fusion-based manufacturing assets, we will further extend our leadership in advanced glass. This affords us greater flexibility in servicing customers, managing capacity, and minimising capital spending as we expand production of Corning Gorilla Glass and pursue new specialty glass applications."

Corning also gets access to additional cash flow from its share of the money on the joint venture's balance sheet and the guaranteed sales in the ten year deal.

"The transaction should add approximately $2bn in annual sales; $350m in incremental profit before special items; and approximately $500m in additional cash flow to Corning," Weeks added. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.