Dallas, Texas 03/05/2014 (FINANCIALSTRENDS) – Corning Incorporated (NYSE:GLW) has reported that it will now work with Citibank, NA to work on an accelerated share repurchase agreement. it will include the buyback of $1.26 billion of the common stock of the company. The ASR will now come into force as Coring worked on a $2 billion repurchase program for shares. The company chose this route to fund the acquisition of the Samsung Corning Precision Materials Co. Ltd.as of Jan 15, 2014.
Corning Incorporated(NYSE:GLW) management explained that the ASR offer demonstrated the company’s commitment to shareholders to enhance and create value.
Corning Incorporated(NYSE:GLW) as per the Agreement, will repurchase over $1.25 billion of the common stock from Citibank. The initial payment will be 52.5 million shares, priced at the present trading rates. Later, there would be second cache of shares, if required. The key to determine this would be a volume-weighted average stock price for the term of the transaction.
Corning Incorporated(NYSE:GLW) hopes to complete this transaction by the second quarter of this fiscal. The deal is expected to be completed through cash payments.
Corning Incorporated(NYSE:GLW) has thus far bought back almost 100 million shares. The number includes the first share of this ASR deal. The current analyst support for the deal is to be provided by Morgan Stanley.
Corning Incorporated has made waves on the technology side for the special purpose glass and ceramics the company produces. The company is one of the oldest in this sector, with over 160 years of domain experience. Corning products which once helped making household items, is today the leading technology provider for optical biosensors to drug discover as well as telecom networks.
The top-line of firms in industries as diverse as electronics, mobile emission control as well as consumer electronics use the range of hardware accessories and technology this company provides.