Corning Completes Strategic Realignment of Interest in Dow Corning
Corning Inc. recently announced that it has completed the previously announced strategic realignment.
Corning Inc. recently announced that it has completed the previously announced strategic realignment of its ownership interest in Dow Corning Corp. Corning has exchanged its 50% interest in Dow Corning for a newly formed company that holds approximately a 40% interest in Hemlock Semiconductor Group and $4.8 billion in cash. Corning received a private letter ruling from the Internal Revenue Service (IRS) that supports the substantially tax-free nature of the transaction.
“The closing of this transaction unlocks significant value for Corning shareholders,” said Wendell P. Weeks, chairman, CEO and president. “The $4.8 billion in cash is the equivalent of approximately 30 times the annual equity earnings of Dow Corning’s silicones business. The freedom to deploy that capital is a tremendous value driver for our shareholders. We thank the Dow Corning team for their contributions and wish them all of the best under the stewardship of Dow Chemical, which has assumed 100% ownership of Dow Corning.”
“Corning’s strategy and capital allocation framework defines our portfolio and underscores our commitment to excellent capital stewardship,” said Weeks. “Our strategy increases our return on innovation by focusing 80% of our resources on our three core technologies, four manufacturing and engineering platforms, and five market-access platforms. We sought the realignment of Dow Corning to increase our focus, and its completion is a significant milestone. We are delighted to be able to continue our ownership in Hemlock, a leading provider of polycrystalline silicon used in the manufacturing of semiconductor and solar devices. Our position in Hemlock allows us to capture the potential upside from a rebound in the solar market, while also providing market insight and access for our semiconductor-innovation programs.”
For more information, visit www.corning.com.