PNC Financial To Sell Its Entire Position In BlackRock Inc.

PNC Financial Services Group Inc. (NYSE:PNC) is selling its entire stake in BlackRock Inc.(NYSE:BLK), the world’s largest asset manager.

PNC said in a statement that it will offer the shares in a public secondary offering. For its part, BlackRock said it will buy back $1.1 billion U.S. in the shares directly from the firm. The stock offering is expected to price on May 12 after the market closes and does not carry a price range.

The decision concludes years of questions over how long PNC, a bank holding and financial services company, would hold on to its stake in BlackRock, where it was the largest shareholder at 22%. PNC acquired the position in BlackRock in 1995 at a cost of $240 million U.S.

“Now is the right time to unlock the value of our investment in BlackRock,” said PNC Chief Executive William Demchak in the statement.

“We feel the time is now right to do just that, realizing a substantial return on our investment, significantly enhancing our already strong balance sheet and liquidity, and leaving PNC very well-positioned to take advantage of potential investment opportunities that history has shown can arise in disrupted markets.”

The move further separates BlackRock from PNC’s regulatory oversight. BlackRock shares fell 2.9% on the news in after-hours trading Monday while PNC’s share price gained 5.2%. BlackRock is the world’s largest asset manager, with $7.4 trillion in assets under management at the end of 2019.