Auction Technology Group Faces New Bid as Shareholder Discontent Grows

Investment firm FitzWalter Capital has submitted a twelfth takeover bid for Auction Technology Group, valuing the company at £491 million. This latest bid comes after a series of rejected offers in recent months, raising questions about the effectiveness of the group’s management.

The recent offer of 400p per share represents a 48 per cent premium to the company’s undisturbed share price. FitzWalter has accused Auction Technology Group’s board of failing to deliver adequate shareholder value, prompting renewed interest in a potential acquisition.

In response to FitzWalter’s previous attempts, Auction Technology Group has maintained confidence in its ability to sustain value as a publicly listed entity. However, ongoing conflicts with a major shareholder, who holds a 21 per cent stake, highlight significant divisions within the investor community.

The shares of Auction Technology Group have dropped approximately 40 per cent since its flotation in 2021, with a closing price of 362p following the latest bid announcement. The group, which connects buyers and sellers of second-hand goods through online auction platforms, reported a notable operating loss of $134.2 million for the year ending in September, primarily due to a substantial non-cash goodwill impairment charge.

FitzWalter Capital’s accusations of value destruction further complicate the already challenging financial landscape for Auction Technology Group. Investors await the company’s response to the latest bid, as the future of its share price and corporate governance remains uncertain.

As the deadline for a firm offer approaches, FitzWalter Capital must demonstrate that its proposal provides a compelling alternative to moving ahead in the current market environment.