These negotiations would have been going on for quite some time....

These negotiations would have been going on for quite some time. There is no doubt in my mind that the sp was held at 1.3 for good reason - accumulation!!! Force those that have no choice to sell out, get their shares cheaply and then bingo. This smells of insider trading. But of course it is very hard to prove.
Yes, the direcftors might have paid 2.5 for some shares, but the vast majority would have been bought at a lower sp.
Oh, and did the new director have anything to do with this?

Mind you, it also frees up the directors to pursue other interests.