DALLAS, Oct.6, 2000 (PRIMEZONE) -- Income Opportunity Realty Investors, Inc. (AMEX:IOT) and American Realty Investors, Inc. (NYSE:ARL) announced Friday that the two companies have entered into a stock option agreement to purchase 1.86 million common shares of Transcontinental Realty Investors, Inc. (NYSE:TCI) from Gotham Partners, L.P., Gotham Partners III, L.P. and Gotham International, Ltd. for a total cost of $16.50 per share.
The stock option agreement provides for payment of an option fee of $4.50 per share, a portion of which was paid upon execution of the agreement, with the balance payable on or before Dec. 15, 2000. The option is exercisable between Jan. 1, 2001, and April 4, 2001, upon payment of the $12 per share purchase price. Income Opportunity will purchase 1,358,900 shares and American Realty will purchase 500,000 shares of Transcontinental, which are held by the Gotham entities. The shares subject to the option represent approximately 21 percent of the outstanding common stock of TCI.
Income Opportunity Realty Investors, Inc. and Transcontinental Realty Investors, Inc. are Dallas-based real estate investment trusts that operate nationwide. American Realty Investors, Inc. is a Dallas-based real estate investment company that primarily invests in equity interest in real estate through direct ownership and partnerships. More information is available on the companies at www.bcm.com .