Corning (GLW) and Samsung Display Extend Long-Term Investment Relationship

Corning Incorporated (NYSE: GLW) today announced the next phase in its long-term relationship with Samsung Display Co., Ltd., a leading display technologies innovator.

Samsung Display has been an investor in Corning since 2014, when it received preferred shares – convertible after seven years and equivalent to an approximately 7.5% ownership stake – as part of a series of strategic and financial agreements that resulted in Corning acquiring full ownership of Samsung Corning Precision Materials, Co., Ltd. The agreements benefitted both companies’ shareholders. Financial and strategic benefits to Corning included full control of its global fusion-glass manufacturing platform, greater flexibility in asset use, greater operational efficiencies, and increased options to pursue precision-glass opportunities.

Following the seven-year anniversary of the agreements, and with the Corning common dividend exceeding the preferred dividend, Samsung Display will convert all of its preferred shares to common, which represents approximately 13% of Corning’s common shares on an as-converted basis.

“Corning is a great partner and we are pleased to have an opportunity to strengthen and extend our nearly 50-year relationship,” Joo-Sun Choi, president and chief executive officer of Samsung Display, said. “Our latest seven-year commitment reaffirms Samsung’s confidence in the value of Corning’s capabilities, our ongoing technology collaborations, and our combined innovation leadership.”

Based on Samsung Display’s continued confidence in Corning, and the strong performance of its original investment, the two companies will enter into a new agreement for another seven years.

• Samsung Display will convert all of its preferred shares to 115 million common shares.
• Corning will repurchase 35 million of those common shares, resulting in Samsung Display having an ownership stake of approximately 9%.
• The initial repurchase of common shares is expected to close in April 2021 and will immediately reduce Corning’s fully diluted share count by 35 million shares, or about 4%.
• Samsung Display will maintain its ownership stake in Corning until at least 2028.

“From the early days of CRT, to LCD, to more recent collaborations on OLED, QD Display, and flexible displays, we’re proud to be the key material innovation partner to Samsung,” said Wendell P. Weeks, Corning’s chairman and CEO. “We are honored by Samsung Display’s vote of confidence to remain a significant shareholder for another seven years.”

Corning Resumes Share Repurchases

Corning has consistently demonstrated its long-term commitment to rewarding shareholders through dividends and share repurchases. Since the original transactions in 2014 with Samsung Display, Corning has reduced diluted shares by more than 40%, and its Board of Directors has increased the quarterly dividend per share by 140%. This transaction marks the resumption of share repurchases by the company.

Tony Tripeny, Corning’s executive vice president and chief financial officer, said, “Outstanding execution and the effectiveness of our ‘more Corning’ strategy put us in a strong position. We’re confident in our future performance and cash generation potential and pleased to resume share buy backs. Repurchasing 4% of our shares through this transaction is a great start. Additionally, the agreement allows payment for the repurchase over two years, providing us with flexibility.

“The transaction eliminates the entire class of preferred shares, improves our capital structure, is accretive to EPS, and reduces our aggregate dividend commitment. We’ve seized a great opportunity for the company and for our shareholders,” Tripeny continued.

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