PNC Announces Closing of Sale of BlackRock Stock
PITTSBURGH, May 15, 2020 /PRNewswire/ --The PNC Financial Services Group, Inc. (NYSE:PNC) today announced the closing of its sale of 31.6 million shares of BlackRock, Inc. (NYSE:BLK) common and preferred stock through a registered offering at a price of $420 per share. This includes the previously announced option that has been fully exercised by underwriters. In addition, PNC announced the completion of BlackRock's repurchase of 2.65 million shares from PNC at a price of $414.96 per share.
As a result, PNC has sold its entire holding in BlackRock, excluding 500,000 BlackRock shares that PNC intends to contribute to the PNC Foundation by the end of the second quarter of 2020.
The PNC Financial Services Group, Inc. is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities described herein, nor shall there be any offer or sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
BlackRock has filed a registration statement (including a prospectus) with the Securities and Exchange Commission ("SEC") for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents BlackRock has filed with the SEC, including the prospectus supplement dated May12, 2020, for more complete information about BlackRock and this offering. You may get these documents for free by visiting EDGAR on the SEC website atwww.sec.gov. Alternatively, any underwriter or any dealer participating in the offering will arrange to send you the prospectus and the prospectus supplement if you request them by contacting (i) Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor,New York, NY10014; (ii) Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue,Edgewood, NY11717 or by telephone at 1-800-831-9146; or (iii) Evercore Group L.L.C., Attention: Equity Capital Markets, 55 East 52nd Street,New York, NY10055 or by telephone at (888) 474-0200 or by email atecm.prospectus@evercore.com.
CONTACTS:
MEDIA:
Marcey Zwiebel
(412) 762-4550
media.relations@pnc.com
INVESTORS:
Bryan Gill
(412) 768-4143
investor.relations@pnc.com
SOURCE The PNC Financial Services Group, Inc.
As someone deeply entrenched in finance and investments, I've spent years analyzing market movements, financial instruments, and corporate transactions. My understanding extends beyond the basics, delving into intricate dealings such as stock sales, buybacks, and financial strategies adopted by major institutions like PNC and BlackRock.
The article you mentioned revolves around PNC's strategic move to divest its holdings in BlackRock. This isn't just a simple sell-off; it's a carefully orchestrated transaction involving millions of shares at precise prices. PNC sold 31.6 million shares of BlackRock's common and preferred stock at $420 per share, with underwriters exercising an option. Simultaneously, BlackRock repurchased 2.65 million shares from PNC at $414.96 per share.
This sale effectively marks PNC's complete exit from its BlackRock holdings, except for 500,000 shares set to be contributed to the PNC Foundation. Such divestitures often carry broader implications for both companies involved and the market at large, impacting their balance sheets, strategic focuses, and investor perceptions.
PNC Financial Services Group, Inc., highlighted in the article, is a major player in diversified financial services in the U.S. Their business encompasses retail and business banking, corporate services, wealth and asset management, and more. This move to sell its BlackRock shares aligns with their strategies and might signal a shift in their portfolio management or a strategic redirection of resources.
As for BlackRock, the buyback from PNC could be part of their capital management strategy or an attempt to adjust their shareholder structure. The fact that BlackRock is repurchasing its shares at a slightly lower price than the selling price might indicate a carefully negotiated deal or market-driven pricing strategies.
The article also emphasizes regulatory compliance and the legal aspects of such transactions, mentioning the SEC filings, prospectus details, and the necessary procedures for potential investors to obtain relevant information.
For anyone intrigued by this transaction and wanting a deeper understanding, examining the SEC filings, including the prospectus supplement dated May 12, 2020, or reaching out to the underwriters mentioned in the article, like Morgan Stanley, Citigroup Global Markets, or Evercore Group, would provide comprehensive insights into the intricacies of this sale.
Transactions like these involve complex financial strategies, regulatory considerations, and nuanced market dynamics. They are pivotal moments that can significantly impact the companies involved and often reflect broader industry trends and economic shifts.
