The PNC Financial Services Group, Inc. (NYSE: PNC) announced that it has agreed to sell 28.75 million shares of BlackRock, Inc. (NYSE: BLK) common and preferred stock through a registered offering at a price of $420 per share. In addition, as previously announced, BlackRock will repurchase 2.65 million shares from PNC at a price of $414.96 per share.
In connection with the offering, the underwriters have been granted an option to purchase up to 2.88 million additional BlackRock shares at the price payable by the underwriters in the offering, exercisable within the next 30 days. If the option is fully exercised, the offering and repurchase will together result in the sale of PNC's 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.
PNC currently holds 34.8 million common and Series B preferred BlackRock shares, which will convert into common stock automatically upon close of the sale, representing 22.4% ownership.