Serica Energy (SQZ, 58p) announced yesterday September 29th that six directors had bought shares in the company on September 26th at prices between 49p and 53p. They also announced that they had the same day (September 26th) received a written share offer from Salamander valuing the shares at 70p. Link to both announcements here.

I’ve a few questions of Serica management:

1. Did you buy shares on the 26th September before or after you had received the wriiten offer from Salamander (valuing the share offer for Serica at 70p using the September 26th closing prices of Salamander and Serica)?

2. Had you received a verbal offer from Salamander prior to the written offer? And was that before or after you bought shares for yourselves?

3. Were you in discussions which may or may not have led to an offer for the company at the time you bought shares on August 15th (see my post of  August 16th ‘Serica – Three directors invest GBP 440k’) ?

My view of August 16th was

‘I consider Fridays purchases to be more significant as three directors are buying, investing significant amounts, and increasing their positions by an average of 20%. Signal strength: STRONG’.

With now 6 directors of a board of 8 buying shares, and an offer on the table, my view remains positive based on the value of directors share dealings in Serica Energy.

Signal Strength remains STRONG.

Disclosure: I have a position in Serica Energy.