Samsung sells their stake in their LCD glass JV to Corning, will take a 7.4% stake in Corning
Corning and Samsung announced a complicated deal today - Corning will buy out Samsung Display's stake in their LCD glass joint venture (Samsung Corning Precision Materials, or SCP). In exchange, Samsung will receive convertible preferred shares in Corning that are valued at $1.9 billion and will acquire more shares for $400 million. If Samsung converts all these shares, they will own 7.4% of Corning.
Corning estimates that this move will add about $2 billion in annual sales and about $350 million in profit. As part of the deal, the two companies signed a new 10-year LCD display glass supply agreement. Corning will also buy other minority shareholders in SCP for about $300 million, and will also pay a special $1.4 billion dividend payment to SDC.