Standard Bank has won over shareholder-activist Roy MacAlpine with its Liberty Holdings buyout.

Bruce Whitfield:
Well last night we heard from Jacko Maree, the chief executive of Standard Bank, who explained why it was that Standard Bank wanted to buy out minorities in Liberty Holdings. One person who has been at the forefront of the debate around the control structure which Standard Bank has exercised over Liberty Life is Roy MacAlpine, he is a shareholder activist, a former managing director of Liberty Asset Management, and Roy, good to talk to you this evening. There was lots of excitement around that, finally the value that investors like yourselves have said has been locked up in Liberty Holdings is finally being unlocked. Has Standard Bank got the recipe right on this transaction or have they not yet done enough?

Roy MacAlpine:
I think they have got it just right this time Bruce. For many years and I have been complaining about this structure, an archaic structure, by which shareholders have been severely prejudiced, in the shares of Liberty Holdings were trading at between a 15 and a 20 percent discount and the offer which they have made not only fully values the shares in terms of underlying shares in Liberty but actually gave a little premium based on yesterday's price. I think it was a 23 percent premium on the closing price yesterday and I have got to say I think that is very fair.

Bruce Whitfield:
So this will effectively give shareholders what they have been asking for for a long time but Standard Bank hasn't yet committed to unravelling the structure itself. The structure should theoretically still stay in place especially if some minorities don't accept the offer.

Roy MacAlpine:
Well yes some minorities may not. In my opinion unless the overall equity market has quite a jump between now and the end of July I would have thought most minorities would accept but you're right each shareholder can make his or her decision and Standard Bank have made it clear that if people stay aboard and they don't get the full support then the existing structure will remain but I think that they have always that ace that they can say we did give you an opportunity and you didn't accept this so don't come and cry.

Bruce Whitfield:
So really the debate over the last couple of years has not been the principal of the control structure but rather the value that was locked up within Liberty Holdings which you now feel has been sufficiently unleashed?

Roy MacAlpine:
Yes but the value was locked up because of the structure and I do feel now that we have got the offer and as I said they could only do it based on last night’s price and I think based on last night’s price it was very fair. If the market goes lower between now and July then the price will be relatively even better and should the market start to rise again then of course the price may not look so good.

Bruce Whitfield:
And at that point you can make your decision.

Roy MacAlpine:
And at that point and towards the end of July each shareholder can make their decision.

Bruce Whitfield:
Based on what you know now, will you be taking the money and putting it into Liberty Life or will you be taking the money and putting it elsewhere?

Roy MacAlpine:
Maybe I'm a bad person to ask for that you know, I spent 29 years with the company and I've always owned shares.

Bruce Whitfield:
That’s why I ask.

Roy MacAlpine:
So I will certainly be putting part of my money back into Liberty Life. I think at the current price they are a very solid long-term buy so I will be putting at least some of my money back in. Whether I will put it all in I’ll wait until the end of July.

Bruce Whitfield:
If you consider that the price of Liberty Holdings was probably higher than the offer price is now in December do you just take that as a vagary of the markets?

Roy MacAlpine:
Yes I do and in this particular transaction of course absolute doesn't come into it because you know you can always take the proceeds and buyback again it is not as though you are being forced out.

Bruce Whitfield:
There we go, Roy MacAlpine, good to talk to you this evening thank you very much. Shareholder activist and he has been vociferous in his criticism and good to see that Standard Bank seems to have won over Roy MacAlpine who has been a thorn in their side on this issue for a very long time.