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BlackRock Advisors announced the Board approval of a reorganization between BlackRock Enhanced Government Fund (EGF) and BlackRock Income Trust (BKT), with BKT as the surviving fund. The reorganization is expected to complete in the first half of 2025, subject to EGF shareholders’ approval. After the reorganization, BKT plans to offer repurchasing of a portion of its common shares through annual tender offers under specific conditions. BKT shareholders are not required to approve the reorganization.
BlackRock Advisors ha annunciato l’approvazione del Consiglio per una riorganizzazione tra BlackRock Enhanced Government Fund (EGF) e BlackRock Income Trust (BKT), con BKT come fondo sopravvissuto. La riorganizzazione dovrebbe essere completata nella prima metà del 2025, soggetta all’approvazione degli azionisti di EGF. Dopo la riorganizzazione, BKT prevede di offrire il riacquisto di una parte delle sue azioni ordinarie attraverso offerte pubbliche annuali sotto specifiche condizioni. Gli azionisti di BKT non sono tenuti ad approvare la riorganizzazione.
BlackRock Advisors anunció la aprobación por parte de la Junta de una reestructuración entre BlackRock Enhanced Government Fund (EGF) y BlackRock Income Trust (BKT), siendo BKT el fondo sobreviviente. Se espera que la reestructuración finalice en la primera mitad de 2025, sujeta a la aprobación de los accionistas de EGF. Tras la reestructuración, BKT planea ofrecer la recompra de una parte de sus acciones ordinarias a través de ofertas públicas anuales bajo condiciones específicas. No se requiere que los accionistas de BKT aprueben la reestructuración.
블랙록 어드바이저스는 블랙록 향상 정부 펀드(EGF)와 블랙록 인컴 트러스트(BKT) 간의 재구성을 이사회에서 승인했다고 발표했습니다. BKT가 생존 펀드로 남게 됩니다. 재구성은 EGF 주주들의 승인을 조건으로 2025 년 상반기 중 완료될 것으로 예상됩니다. 재구성 후, BKT는 특정 조건에 따라 연간 입찰 제안을 통해 자사의 일반 주식을 일부 재매입할 계획입니다. BKT 주주들은 재구성에 대한 승인을 요구받지 않습니다.
BlackRock Advisors a annoncé l’approbation par le Conseil d’une réorganisation entre BlackRock Enhanced Government Fund (EGF) et BlackRock Income Trust (BKT), avec BKT comme fonds survivant. La réorganisation devrait s’achever dans la première moitié de 2025, sous réserve de l’approbation des actionnaires d’EGF. Après la réorganisation, BKT prévoit d’offrir le rachat d’une partie de ses actions ordinaires par le biais d’offres publiques annuelles selon des conditions spécifiques. Il n’est pas nécessaire que les actionnaires de BKT approuvent la réorganisation.
BlackRock Advisors hat die Genehmigung des Vorstands für eine Umstrukturierung zwischen BlackRock Enhanced Government Fund (EGF) und BlackRock Income Trust (BKT) bekannt gegeben, wobei BKT als überlebender Fonds fungiert. Die Umstrukturierung soll in der ersten Hälfte des Jahres 2025 abgeschlossen werden, abhängig von der Zustimmung der EGF-Aktionäre. Nach der Umstrukturierung plant BKT, einen Teil seiner Stammaktien unter bestimmten Bedingungen über jährliche Rückkaufangebote zurückzukaufen. Eine Genehmigung der Umstrukturierung durch die BKT-Aktionäre ist nicht erforderlich.
Positive
- Post-merger tender offer program provides shareholders with potential liquidity opportunities
Negative
- EGF shareholders will lose their standalone investment vehicle through the merger
Insights
This closed-end fund reorganization represents a significant structural change for shareholders of both EGF and BKT. The merger of EGF into BKT will create a larger combined entity, potentially offering better economies of scale and improved liquidity. The introduction of an annual tender offer mechanism by BKT post-merger is particularly noteworthy, as it provides shareholders with periodic exit opportunities at prices closer to NAV.
The timing of completion in first half 2025 and requirement for EGF shareholder approval introduces execution risk. Investors should closely monitor the upcoming proxy statement for detailed terms, including conversion ratios and any tax implications. While fund mergers typically aim to reduce operational costs, the actual benefits will depend on the final structure and implementation.
NEW YORK–(BUSINESS WIRE)– BlackRock Advisors, LLC announced today that the Boards of Directors of BlackRock Enhanced Government Fund, Inc. (NYSE: EGF) and BlackRock Income Trust, Inc. (NYSE: BKT) (each, a “Fund” and together, the “Funds”) have approved the reorganization of EGF with and into BKT, with BKT continuing as the surviving Fund (collectively, the “Reorganization”). Following the closing of the Reorganization, BKT, as the surviving Fund, intends to offer to repurchase a portion of its common shares via an annual tender offer if certain conditions are met during specified time periods.
It is currently expected that the Reorganization will be completed in the first half of 2025, subject to the requisite approvals by EGF’s shareholders. Shareholders of BKT are not required to approve the Reorganization.
Additional Information about the Reorganization and Where to Find It
This press release is not intended to, and does not, constitute an offer to purchase or sell shares of the Funds nor is this press release intended to solicit a proxy from any shareholder of any of the Funds. The solicitation of the purchase or sale of securities or of proxies to effect the Reorganization will only be made by either a definitive Proxy Statement/Prospectus.
This press release references a Proxy Statement/Prospectus, to be filed by BKT. The Proxy Statement/Prospectus has yet to be filed with the U.S. Securities and Exchange Commission (the “SEC”). After the Proxy Statement/Prospectus is filed with the SEC, it may be amended or withdrawn. The Proxy Statement/Prospectus will not be distributed to shareholders of EGF unless and until a Registration Statement comprising of the Proxy Statement/Prospectus is declared effective by the SEC.
The Funds and their respective directors, officers and employees, and BlackRock, and its shareholders, officers and employees and other persons may be deemed to be participants in the solicitation of proxies with respect to the Reorganization. Investors and shareholders may obtain more detailed information regarding the direct and indirect interests of the Funds’ respective directors, officers and employees, and BlackRock and its shareholders, officers and employees and other persons by reading the Proxy Statement/Prospectus when it is filed with the SEC.
INVESTORS AND SECURITY HOLDERS OF THE FUNDS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THESE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION ABOUT THE REORGANIZATION. INVESTORS SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUNDS CAREFULLY. THE PROXY STATEMENT/PROSPECTUS WILL CONTAIN INFORMATION WITH RESPECT TO THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES OF THE FUNDS.
The Proxy Statement/Prospectus will not constitute an offer to buy or sell securities, in any state where such offer or sale is not permitted.
Security holders may obtain free copies (when they become available) of the Proxy Statement/Prospectus and other documents filed with the SEC at the SEC’s web site at www.sec.gov. In addition, free copies (when they become available) of the Proxy Statement/Prospectus and other documents filed with the SEC may also be obtained by directing a request to BlackRock at (800) 882-0052.
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable. For additional information on BlackRock, please visit www.blackrock.com/corporate
Availability of Fund Updates
BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the “Closed-end Funds” section of www.blackrock.com as well as certain other material information as necessary from time to time. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock’s website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this release.
Forward-Looking Statements
This press release, and other statements that BlackRock or a Fund may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to a Fund’s or BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
With respect to each Fund, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Fund or in the Fund’s net asset value; (2) the relative and absolute investment performance of the Fund and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, and regulatory, supervisory or enforcement actions of government agencies relating to the Fund or BlackRock, as applicable; (8) terrorist activities, international hostilities, health epidemics and/or pandemics and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (9) BlackRock’s ability to attract and retain highly talented professionals; (10) the impact of BlackRock electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.
Annual and Semi-Annual Reports and other regulatory filings of each Fund with the SEC are accessible on the SEC’s website at www.sec.gov and on BlackRock’s website at www.blackrock.com, and may discuss these or other factors that affect the Fund. The information contained on BlackRock’s website is not a part of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241126352668/en/
BlackRock Closed-End Funds
1-800-882-0052
Source: BlackRock Closed-End Funds
FAQ
When will the BlackRock Enhanced Government Fund (EGF) reorganization complete?
The reorganization is expected to complete in the first half of 2025, subject to EGF shareholders’ approval.
What happens to EGF shares after the reorganization with BKT?
EGF will merge into BKT, with BKT continuing as the surviving fund. BKT plans to offer repurchasing opportunities through annual tender offers.
Do BlackRock Income Trust (BKT) shareholders need to approve the EGF reorganization?
No, BKT shareholders are not required to approve the reorganization.
