Auction Technology Group (LSE:ATG) said it has rejected an indicative, all-cash proposal of 400 pence per share from FitzWalter Capital, stating that the approach materially undervalues the business and its long-term growth potential. The board confirmed it has not yet received a customary letter setting out detailed terms and unanimously advised shareholders to take no action at this stage.
The company said it will provide a further update at its annual general meeting trading statement scheduled for 22 January. While the proposal was rejected, the board signalled it remains open to engaging with FitzWalter Capital or other potential bidders should a fully detailed offer emerge that appropriately reflects the group’s value and future prospects.
In line with UK takeover regulations, FitzWalter has until 2 February 2026 to either announce a firm intention to make an offer or confirm that it does not intend to proceed. In the meantime, Auction Technology Group has entered a formal offer period, which is expected to draw close attention from investors and other interested parties.
From an investment standpoint, the group’s outlook continues to be weighed down by weak financial performance, including operating losses, negative margins and declining free cash flow growth, despite ongoing revenue expansion and a stable leverage position. Technically, the shares are trading above key moving averages with positive momentum indicators, offering some support. However, valuation remains constrained by negative earnings and the absence of a dividend.
More about Auction Technology Group PLC
Auction Technology Group plc operates digital auction marketplaces and technology platforms that connect auctioneers with bidders across specialist and industrial asset categories. The group enables both timed online auctions and live-streamed bidding, supporting a global network of auction houses, consignors and professional buyers.
Leave a Reply