Samsung is entering into a series of strategic and financial agreements with toughened glass maker Corning Incorporated, including a new LCD display glass supply agreement between Corning until 2023.
The deal intended to strengthen product and technology collaborations between the two companies.
Corning will acquire full ownership of Samsung Corning Precision Materials Co., Ltd, an unconsolidated equity venture that manufactures LCD glass in Korea, of which Samsung Display Co. currently owns 43 per cent.
After redemption of their interest in SCP, Samsung Display’s investment in new convertible preferred shares of Corning with an aggregate face amount of $1.9 billion, and it will make an additional $400 million investment in Corning by subscribing to new convertible preferred shares.
Using Corning’s current share count, Samsung Display’s combined investment in Corning would result in approximately 7.4% ownership on an as-converted basis.
These agreements will allow Corning to extend its leadership in specialty glass and drive earnings growth.
“We are excited to enter this new era of collaboration in our 40-year equity relationship with Samsung, one of the world leaders in consumer electronics,” Wendell P. Weeks, chairman, chief executive officer and president, said. “The agreements provide important financial and strategic benefits to both Corning and Samsung.”
Samsung Display specializes in high-quality displays for consumer, mobile, IT and industrial usage.