Samsung Display Becomes Major Shareholder of Corning Inc. in the U.S.... "Extending a 50-Year Partnership"

Late Samsung Electronics Chairman Lee Kun-hee (right in the photo) meeting with James Horton, Honorary Chairman of Corning, in 2013 for a commemorative photo.

[Asia Economy Reporter Jeong Hyunjin] Samsung Display is becoming the largest shareholder of Corning, a U.S. company with a 170-year history. Samsung Display will sell part of its existing shares to Corning to support Corning's efforts to repurchase its own shares and extend their cooperative relationship, which has lasted over 50 years, until 2028.

On the 5th (local time), Corning announced that it has established a long-term cooperative relationship with Samsung Display and that Samsung Display will be Corning's largest shareholder at least until 2028. This follows Samsung Display’s 2013 sale of its stake in Samsung Corning Precision Materials to Corning, acquiring Corning’s convertible preferred shares and agreeing to convert them into common shares seven years later.

Under this agreement, when Samsung Display converts its held convertible preferred shares of Corning into common shares (115 million shares), Corning plans to repurchase 35 million of these shares. Samsung Display had previously stated at the time of acquiring the stake in 2013 that it would not exceed a 9% shareholding. The partial sale of Samsung Display’s Corning shares is expected to take place within this month.

As a result, Samsung Display is expected to hold a final stake of 80 million shares, equivalent to 9% of Corning, becoming the second-largest shareholder. According to CNN, Corning’s largest shareholder currently is the U.S. asset management firm Vanguard Group, holding 10.58% of Corning’s shares as of this date. Samsung Display will secure the status of largest shareholder but does not plan to intervene in management separately.

Choi Ju-seon, President of Samsung Display, said, "Corning is a great partner, and we are pleased to have the opportunity to strengthen and extend a relationship that has lasted about 50 years," adding, "This agreement reaffirms Samsung’s trust in Corning’s capabilities, our ongoing technological cooperation, and joint innovation leadership." Wendell P. Weeks, CEO of Corning, also said, "We take pride in being Samsung’s core raw material innovation partner, from CRT and LCD to OLED, QD displays, and flexible displays, including recent collaborations."

The relationship between Samsung Display and Corning is particularly special, having lasted over 50 years. The two companies established a joint venture, Samsung Corning, in 1973 to manufacture glass for CRT TVs, and in 1995, they founded Samsung Corning Precision Materials as a joint venture. The late Lee Kun-hee, Chairman of Samsung Electronics, also hosted a dinner at his private office in Seungjiwon when James Horton, Honorary Chairman of Corning, who had a long-standing relationship with Samsung, visited Korea in 2013.

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