PNC Plans to Sell Off Its Remaining Stake In Blackrock
PNC Financial Services Group announced their plans to sell off the remaining 22% of their stake in Blackrock Inc. The stake is valued at roughly $17 billion, according to a report by the Post Gazette.
In 1995, PNC purchased a 100% stake in Blackrock for $240 million and has been selling off portions of it for years. PNC is planning to offer up its final share in a public secondary offering.
Blackrock will also buy back $1.1 billion worth of shares directly from PNC, and the underwriters will be given a 30-day option to buy 10% of additional shares.
While CEO William Demchak has said before that PNC was not looking to take over a large bank, the money obtained from the sale could be used by PNC for acquisitions.
Demchak stated that the sale would allow PNC to “unlock the value of our investment,” and leave them “very well-positioned to take advantage of potential investment opportunities that history has shown can arise in disrupted markets.”
The sale would also give PNC a good return on investment and allow them to enhance their balance sheet and liquidity, as well as “eliminate any regulatory obligations associated with the ownership of a large position in another diversified financial services company,” according to Demchak.