BlackRock's largest shareholder PNC Financial will offload its full 22% stake in the asset management company, the firm said as it looks to pursue other investment opportunities.
Pittsburgh-based bank PNC said "the time is now right" for it to offload the 34.8 million shares, comprising common and preferred stock it purchased in 1995.
As well as "significantly enhancing our already strong balance sheet and liquidity", PNC chairman, president and CEO William S. Demchak said it would leave the bank "very well-positioned to take advantage of potential investment opportunities that history has shown can arise in disrupted markets".
PNC was the biggest riser in the S&P 500 in after-hours trading, jumping almost 5% by time of writing. BlackRock shares had slipped 3%.
BlackRock itself will repurchase $1.1bn of its own stock from PNC, which the firm said would see it hit its targeted level of share repurchases for 2020 at $1.5bn. However, BlackRock added it would "remain opportunistic should relative valuation opportunities arrive".
PNC continued it would not sell the 500,000 BlackRock shares it is retaining for a donation to the PNC Foundation by the end of Q2 2020.
Demchak said: "BlackRock's long track record of strong performance and growth has created significant value since PNC acquired our stake in the company.
"As good stewards of shareholder capital, we have consistently reviewed options to unlock the value of our investment. We feel the time is now right to do just that, realising a substantial return on our investment."
BlackRock shares have climbed around 3,500% since it listed in 1999.