Auction Technology Group (ATG) has rejected a total of 11 "unsolicited" takeover proposals from its largest shareholder, FitzWalter Capital.

The latest offer, which was proposed on 23 December, comprised an offer price of 360 pence per share, which Reuters has calculated to total around £436m.

The board at ATG said that while the proposals had undervalued the firm and its future prospects, they also represented an “opportunistic attempt” to acquire the firm at a time when its public market valuation is disconnected from the company’s fair value.

In the last year, ATG’s share price has fallen by over 41%, but increased by almost 20% following its statement about the acquisition proposals.

The auction technology firm said it would intend to keep the discussions with the London-based investment firm private, but following FitzWalter’s announcement on the nature of the proposal, along with a lack of positive movement on headline commercial terms, it was "keen to bring a conclusion to the matter".

Chair at ATG, Scott Forbes, said that the company "remains confident" in achieving its ambitions as a publicly listed company and delivering significant shareholder value.

He added: "As a sector leader, ATG is in a strong position to extend its leadership and expand its footprint to capture more of the under-served and significant TAM for curated second-hand goods.

"The board has undertaken significant engagement with FitzWalter over the past four months. The board believes FitzWalter's proposals fundamentally undervalue the business and that it is time for FitzWalter either to make a proposal which reflects fair value, or otherwise allow the business to dedicate its full focus and resources on the execution of its strategy."

In accordance with takeover rules, FitzWalter now has until 2 February to announce a firm intention to make an offer for ATG or not proceed.

Investment director at AJ Bell, Russ Mould, said that usually, a couple of rejections would send a message that any interest in a potential takeover was unwelcome, but FitzWalter appears reluctant to give up.

He concluded: "The online auction platform has not had a particularly happy time on the stock market, trading way below its IPO price and at just a fraction of the levels it reached in 2021. A move online has increased the scope of auctions from the days when smaller auction houses were limited in the number of buyers they could accommodate due to physical space.

"ATG can also benefit, in theory, from a network effect by offering quality items which attract quality bidders, which in turn attract more sellers of quality items and so on. However, poorly performing acquisitions, increased debt and uneven operating performance have created scepticism among investors, and it will be interesting to see if FitzWalter returns to test the resolve of shareholders before the early February deadline to put up or shut up."

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