Investor FitzWalter Capital has reiterated a proposal valuing Auction Technology Group at 360 pence per share, prompting scepticism from RBC Capital Markets analysts. In a research note, RBC argued that the offer significantly undervalues ATG’s leading online auction platform, highlighting recent revenue growth of 24% year-on-year and an expanding global buyer base that now exceeds 15 million active users. RBC concluded that such a lowball bid is unlikely to gain traction with institutional shareholders, who have benefitted from ATG’s robust free cash flow generation and a return-on-invested-capital metric comfortably above peer averages over the past two fiscal years.

ATG’s board revealed it has turned down 11 unsolicited and highly conditional takeover proposals from FitzWalter Capital over the last four months, including the most recent cash bid. Following the announcement, ATG’s share price surged by over 20%, reflecting investor confidence in management’s strategy to pursue organic growth and selective M&A rather than a fire-sale exit. The board emphasized its commitment to enhancing margins through technology investments and international expansion, pointing to a 30% uplift in marketplace transactions outside the UK since the start of the current financial year.