Samsung Display sells back 35 million shares in US Corning for $1.6 billion

Samsung Display Co., South Korea’s largest display maker, is selling 35 million shares in Corning Inc. back to the US company for an estimated $1.6 billion in a deal that will slash Samsung’s stake in Corning to 9% from 13%.

According to display industry officials on Monday, Samsung, which bought 2,300 convertible preferred shares in Corning in 2013, is converting all of the shares into 115 million common stocks based on a conversion ratio set earlier.

Of the converted shares, the Korean company will sell 35 million shares back to Corning by the end of April.

As a result, Samsung Display will eventually hold 80 million shares, amounting to a 9% stake in Corning. This will make the Korean company the second-largest shareholder of Corning after top shareholder Vanguard Group, a US asset management company, with a 10.58% stake.

Samsung will maintain its ownership stake in Corning until at least 2028, industry officials said.

Back in 2013, Samsung Display bought the convertible preferred shares of Corning in return for handing over its entire stake in their joint venture, Samsung Corning Precision Materials Co., to the US firm.

The relationship between Samsung Display and Corning began in 1973, when they established the JV to produce glass substrates for display panels.

Through the sale of 35 million shares, Samsung Display will make about $1.6 billion or 1.8 trillion won based on Corning’s trading price of $46.23 a share on the New York Stock Exchange.

The proceeds are similar to Samsung’s annual net profit. The Korean company posted 1.87 trillion won in net profit in 2020 and a profit of 1.14 trillion won in 2019.

Write to Shin-Young Park at nyusos@hankyung.com
In-Soo Nam edited this article.