Extended Deal With Samsung Is Positive For Corning Incorporated (NYSE:GLW)
Since Tuesday, Corning Incorporated (NYSE:GLW)’s shares have been on the rise after it announced that it will assume 100%-ownership of one Samsung electronics subsidiary. This move now guarantees that Corning Incorporated (NYSE:GLW) will be the supplier of crystal-display glass to Samsung right through to 2023. The former will buy Samsung’s 43% stake in the LCD glass joint-venture in Korea and will buy-out all shares from minority shareholders.
Exciting phase for both companies
Corning Incorporated (NYSE:GLW)’s Chairman and Chief Executive Officer, Wendell P. Weeks, said that they are very excited to be entering this new collaboration phase in their 40 year equity-relationship with Samsung, which is one of the leading consumer electronics companies in the world. He said that the agreements provide very important strategic and financial benefits to both the companies.
Samsung Display will get $1.9M worth of Corning Incorporated (NYSE:GLW)’s preferred shares. In addition, it will be investing $400M more in Corning Incorporated (NYSE:GLW) preferred shares. If these shares were to be converted, they would give
Samsung Display a 7.4% interest in the company. These transactions are expected to close in the 2014Q1. Along with this announcement, Corning Incorporated (NYSE:GLW) issued its preliminary Q3 results. It reported core-earnings of 33 cents/share which is an 18% increase over the 28 cents that was reported in the 2012Q3.
In Wednesday’s trading, Corning Incorporated (NYSE:GLW) rose by 14.14%. The opening price of the shares was $18.04, which climbed to an intraday high of $18.07 and dipped to a close of $17.52. Approximately 87.16 million shares were traded on Wednesday while an average volume of 12.79 million shares were traded over a 30 day period. The 52-week low of Corning Incorporated (NYSE:GLW) shares is $10.71 and its 52-week high is $18.07. Corning Incorporated (NYSE:GLW) has a market capitalization of $25.59 billion.