The Dallas-based trio is following through on a settlementreached in October 2001 in a shareholders' class-action lawsuit.Transcontinental Realty stock is being bought at $17.50 per shareand Income Opportunity at $19 per share. For Transcontinental, thatrepresents a 44.6% premium over the average closing price for 30days of trading and 28.7% over premium for Income Opportunity.

The offer was to have ended Dec. 13, but was extended late inthe afternoon. At that point, the depository for both tender offerswas 990,304 share or 12.4% of the outstanding common stock ofTranscontinental and 252,174 shares or 17.2% of Income OpportunityRealty Investors' outstanding stock.

The buyout, when completed, will cap 12 years of legal maneuversfor the trio, all headquartered at Mercer Crossing in Dallas. Underthe settlement plan, American Realty will end up spending $50million to acquire the outstanding stock balance ofTranscontinental and $11 million for Income Opportunity Realty.American and its affiliates already owned 64.5% of Transcontinentaland 59.9% of Income Opportunity. The Transcontinental portfolio isvalued at more than $293 million and Income Opportunity's in excessof $93 million. The real estate is located in the Southeast,Southwest and Pacific regions.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.