Summary
Corning Incorporated (GLW) announced on October 31, 2013, a significant step in its capital return strategy by entering into an Accelerated Share Repurchase (ASR) agreement with JPMorgan Chase Bank for approximately $1 billion of its common stock. This transaction is part of a larger share repurchase program authorized by the company. Investors should note that this ASR is a substantial deployment of capital aimed at enhancing shareholder value through stock buybacks. The ASR involves an initial payment of $1 billion and an immediate delivery of roughly 47 million shares. The final number of shares repurchased will be determined by the average daily volume-weighted average price during a specified period, with potential adjustments. The agreement also includes provisions for additional share deliveries or cash payments at settlement, which is anticipated in the first quarter of 2014. This move signals management's confidence in the company's financial health and its commitment to returning capital to shareholders.
Key Highlights
- 1Corning Inc. entered into an Accelerated Share Repurchase (ASR) agreement for $1 billion.
- 2The ASR is part of a broader share repurchase program, with a prior $2 billion authorization approved in April 2013.
- 3Corning made an initial payment of $1 billion to JPMorgan Chase Bank.
- 4The company will receive an initial delivery of approximately 47 million shares of its common stock on October 31, 2013.
- 5The final number of repurchased shares will be determined by the average daily volume-weighted average price during a repurchase period, less a discount.
- 6Final settlement of the ASR is expected in the first quarter of 2014, with potential adjustments to the number of shares or cash payment.
- 7A separate $2 billion repurchase program was announced on October 22, 2013, contingent on the acquisition of the remaining 50% interest in Samsung Corning Precision Materials Co., Ltd.