Corning Inc. (GLW) stock is up Monday after the company announced an extended long-term agreement with Samsung Display that includes a Corning repurchase of 35 million shares of common stock from Samsung Display. As of early Monday afternoon, shares of GLW were up nearly 4%.
Why Corning (GLW) is up Tuesday
Corning Inc. stock rose after the company announced an updated agreement with Samsung Display that built off the previous seven year agreement outlined in 2014. Based on the new agreement, Samsung Display is set to convert all of its preferred shares in Corning into common shares on an as-converted basis. The repurchase will give Samsung a 9% stake in Corning, up from the 7.5% stake it held in 2014. The initial share repurchase is set to close this April and will give Samsung Display an ownership stake in Corning until at least 2028.
Commenting on the renewed agreement, Wendell P. Weeks, Corning’s chairman and CEO stated, "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. We are honored by Samsung Display’s vote of confidence to remain a significant shareholder for another seven years.”
GLW has a Long-Term Technical Rank of 90. Find out what this means to you and get the rest of the rankings on GLW!
Corning is a leader in materials science, specializing in the production of glass, ceramics, and optical fiber. The firm supplies its products for a wide range of applications, from flat-panel displays in televisions to gasoline particulate filters in automobiles to optical fiber for broadband access, with a leading share in many of its end markets.