BlackRock ESG Capital Allocation Term Stock Price, News & Analysis

BlackRock announced that Egan-Jones has become the third leading proxy advisory firm, alongside ISS and Glass Lewis, to recommend ECAT shareholders vote in favor of all ten incumbent Board nominees and against Saba Capital's proposal to terminate BlackRock as investment adviser. The recommendations come ahead of BlackRock ESG Allocation Term Trust's annual meeting on June 26, 2025. Egan-Jones highlighted ECAT's superior shareholder returns compared to peers and emphasized that terminating BlackRock's investment management agreement would be detrimental to the Fund's future. The firm rejected Saba's full slate of eight nominees, stating that the dissident has not made a compelling case for termination.

ISS, a leading proxy advisory firm, has recommended BlackRock ESG Allocation Term Trust (ECAT) shareholders vote on the WHITE card in favor of nine out of ten incumbent Board nominees and against a dissident shareholder's proposal to terminate BlackRock as investment adviser. ISS joins Glass Lewis in rejecting the dissident's full slate of eight nominees ahead of the June 26, 2025 annual meeting. ISS highlighted that the dissident hasn't presented a compelling case for change, noting ECAT's outperformance since inception and the board's positive impact on reducing the discount since the 2024 AGM. Glass Lewis has recommended shareholders vote FOR all Board nominees and AGAINST the termination proposal on the WHITE proxy card.

BlackRock closed-end funds MVF, ECAT, and BIGZ have announced the final results of their tender offers for up to 2.5% of outstanding common shares. All offers were oversubscribed, leading to pro-rata purchases. Key details:

- MVF: 26,471,815 shares tendered, 1,586,158 to be purchased at $7.9086 per share
- ECAT: 17,487,970 shares tendered, 2,547,328 to be purchased at $18.0516 per share
- BIGZ: 42,424,300 shares tendered, 5,610,470 to be purchased at $8.1242 per share

Purchase prices are set at 98% of each fund's NAV as of August 22, 2024. Payments are expected within five business days after the expiration date.

BlackRock closed-end funds MVF, ECAT, and BIGZ have announced the expiration and preliminary results of their tender offers for up to 2.5% of outstanding common shares. The offers, which began on July 22, 2024, and ended on August 21, 2024, were significantly oversubscribed. For example, BlackRock MuniVest Fund (MVF) offered 1,586,158 shares but received tenders for 26,471,815 shares. Due to oversubscription, share purchases are expected to be prorated. The purchase price will be 98% of each fund's NAV as of August 22, 2024. Final results, including pro-ration factors, are expected to be announced around August 22, 2024.

The U.S. District Court for the Southern District of New York denied BlackRock's motion to dismiss Saba Capital's lawsuit concerning the ECAT's voting bylaws. The court concluded that Saba adequately alleged that ECAT's bylaws could deprive shareholders of their right to elect trustees, violating the Investment Company Act (ICA). Judge Margaret M. Garnett found that BlackRock’s belief that ECAT could have ongoing failed elections was implausible. She emphasized that the fund's bylaws were designed to circumvent shareholder rights. The ruling also dismissed BlackRock's claims that Saba was merely an activist investor, affirming Saba's rights as a shareholder. The decision enables Saba to proceed to trial to contest ECAT’s governance practices.