Wednesday, June 1, 2016

Corning Incorporated Completes Strategic Realignment of Interest in Dow Corning Corporation

Raises projected shareholder distributions through 2019 to more than $12.5 billion 
Corning Incorporated (NYSE: GLW) today announced that it has completed the previously announced strategic realignment of its ownership interest in Dow Corning Corporation. 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 that supports the substantially tax-free nature of the transaction.
“The closing of this transaction unlocks significant value for Corning shareholders. 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,” said Wendell P. Weeks, chairman, chief executive officer, and president.
“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,” Weeks added.