Serica faces ‘aggressive’ questioning on Tailwind deal

The UK-focused producer is finding shareholders disgruntled by its latest proposed M&A

AIM-listed UK E&P Serica Energy is not having an easy ride from existing backers about its plan to acquire peer Tailwind Energy. The component of the deal giving Swiss commodity trading house Mercuria, a large stakeholder in Tailwind, a 25pc share in the enlarged firm is a particular lightning rod for dissent.    A mid-January investor presentation saw Serica CEO Mitch Flegg responding to what he called “quite aggressive” questions from those with doubts about the transaction. These included complaints that a “40pc share dilution to existing shareholders is unfathomable”. “How is this acceptable?” they asked. 25pc – Mercuria’s future stake in Serica “How is the company not seeing