Company: MYI
Filing Date: 2025-07-15
Form Type: 425
Source: 0001193125-25-159406
Chunk: 3

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-07-15
Form: 425
Chunk 3
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 withdraw. The 
 Fund does not intend to increase the number of Shares that it is offering to purchase, even if stockholders tender more than the Offer Amount. Stockholders cannot be assured that all of their tendered Shares will be purchased. (See Section 1,        
 “Price; Number of Shares” and Section 7, “Payment for Shares.”)                                                                                                                                                                                           |

When will the Offer expire, and may the Offer be extended?

What is the purpose of the Offer?

| • |     | On May 3, 2024, the Fund and the Investment Advisor entered into a standstill agreement (the                                                                                                                                                       
 “Standstill Agreement”) with Karpus Management, Inc. (“Karpus”), pursuant to which the Fund agreed to adopt a discount management program (the “Program”). Under the terms of the Program, the Fund intends to conduct                             
 tender offers to repurchase 2.5% of its outstanding Shares, at a price per share equal to 98% of the Fund’s NAV per Share, if the Fund’s Shares trade at an average daily discount to NAV greater than 7.5% during a measurement period (each,     
 a “Conditional Tender Offer”). Each measurement period has a three calendar month term, commencing April 1, 2024 and continuing for a period of 18 months. During the effective period of the Standstill Agreement, Karpus, the Fund and           
 the Investment Advisor agreed to be bound by the terms of the Standstill Agreement, which include an agreement by Karpus to (1) abide by certain standstill covenants, and (2) vote its Shares in accordance with the recommendation of the        
 Board on all proposals submitted to shareholders, including proposals submitted at the Fund’s 2024 annual meeting of shareholders. The Standstill Agreement will remain in effect until the earlier of (i) May 3, 2027, (ii) 10 days prior         
 to the record date for the Fund’s 2027 annual meeting of shareholders, (iii) if the Fund has not commenced a Conditional Tender Offer within 15 business days of the applicable calendar quarter end if required to be commenced pursuant to       
 the terms of the Standstill Agreement, the date that is 16 business days after the applicable calendar quarter end, and (iv) such date that the Fund determines not to conduct a Conditional Tender Offer if required to be conducted pursuant to  
 the terms of the Standstill Agreement, unless the Standstill Agreement is terminated earlier by the parties. The