UPDATE 1-Corning to buy out Samsung from LCD JV, signs 10-yr supply deal
Oct 22 (Reuters) - Specialty glass maker Corning Inc said it would buy out Samsung Electronics Co Ltd's stake in their LCD panel joint venture in a deal that could result in the South Korean company taking a 7.4 percent share in Corning.
The deal includes a new LCD display glass supply agreement between Corning and Samsung running through 2023 that will add about $2 billion to Corning's annual sales.
Corning shares jumped more than 20 percent to $18.51 in extended trading on Tuesday.
Samsung will receive convertible preferred shares with a face value of $1.9 billion and will make an additional $400 million investment in Corning by subscribing to new convertible preferred shares.
If the preferred shares are converted, Samsung would get a 7.4 percent stake in Corning. Based on Corning's closing share price on Tuesday, the holding would be worth about $1.7 billion.
Samsung currently owns 43 percent of the joint venture, Samsung Corning Precision Materials Co Ltd, formed in 1995.
The joint venture makes active matrix LCD glass used in television sets, notebook computers, desktop monitors, digital cameras and mobile phones.
Corning also reported preliminary results that were in line with market estimates. Full results will be announced on Oct. 30.