According to a report from Engadget, Corning has obtained the controlling stake in Samsung Corning Precision Materials Co Ltd.
This precision materials company was originally established as a manufacturing plant in Wuxi New District, China by both Samsung and Corning, with the aim of providing stronger display screens for laptops and desktops. Samsung's shares in this company have now dropped to 43%, meaning that Corning has gained control over this precision materials company.
In exchange, Corning has provided Samsung, the Korean electronics giant, with preferred shares worth $1.9 billion. If these preferred shares are converted, Samsung will acquire 7.4% of Corning's equity. According to reports by NetEase Technology, after seven years, these stocks can be converted at a price of $20 per share. If Corning's stock price exceeds $35 at that time, Corning will have the right to force Samsung to convert these stocks.
Both parties have also signed a cooperation agreement where Corning will supply display screens to Samsung until 2023. Given that Samsung itself is a provider of LCD displays and other components to many companies, this move will undoubtedly attract attention within the industry.
Corning's "Gorilla Glass" is highly renowned and widely used on many high-end smartphones and tablets. Its clients include Samsung, Apple, HTC, and Motorola.