DALLAS, April 10, 2001 (PRIMEZONE) -- American Realty Investors, Inc. (NYSE:ARL) announced Tuesday that on April 9, 2001, the company purchased 1,858,900 common shares of Transcontinental Realty Investors, Inc. (NYSE:TCI) for $12 per share from Gotham Partners, L.P., Gotham Partners III, L.P. and Gotham International, Ltd. The purchase was made by ARI's exercise of a stock option pursuant to a stock option agreement entered into in October 2000.
The stock purchase represents approximately 21 percent of TCI's outstanding common stock and increases ARI's holdings in TCI to approximately 46 percent.
The stock option provided for a $4.50 per share option fee payment, a portion of which was paid upon execution of the agreement in October 2000, and the balance of which was paid on April 4, 2001. The option was exercisable between January 1, 2001, and April 5, 2001, upon payment of $12 per share.
American Realty Investors, Inc. is a Dallas-based real estate investment company that primarily invests in real estate and real estate-related entities. For more information, go to the company's Web site at www.amrealtytrust.com. Transcontinental Realty Investors, Inc. is a Dallas-based real estate investment company that owns and operates commercial and residential properties nationwide. For more information on TCI, go to the company Web site at www.transconrealty-invest.com.