Key Takeaways
- FitzWalter Capital has raised its buyout proposal for Auction Technology Group to 491 million pounds ($658 million) or 400 pence per share
- The increased offer is at an 11% premium to FitzWalter’s last offer and has sent Auction Technology shares up by as much as 15%
- FitzWalter has urged Auction Technology shareholders to pressure the board to engage in negotiations before a February 2 deadline
- The investment firm has accused Auction Technology’s management of failing to deliver shareholder value and making poor business decisions
- Another top shareholder has stated that the latest offer is not good enough and does not reflect the company’s intrinsic value
Introduction to the Proposal
FitzWalter Capital, the largest shareholder of Auction Technology Group, has raised its buyout proposal for the British online auction operator to 491 million pounds ($658 million) or 400 pence per share. This increased offer comes after repeated rejections of previous proposals, which Auction Technology said had undervalued the business. The new proposal is at an 11% premium to FitzWalter’s last offer of 360 pence per share, and has sent Auction Technology shares up by as much as 15% to 370 pence.
Background on the Companies
Auction Technology Group is a British online auction operator that connects buyers and sellers of antiques and art through auction platforms. FitzWalter Capital, on the other hand, is a London-based investment firm that holds more than 21% of Auction Technology. The firm has been critical of Auction Technology’s management, accusing them of making poor business decisions, such as acquiring U.S.-based online marketplace Chairish, and allowing "cost-driven margin declines". FitzWalter has also accused Auction Technology of pre-emptively disclosing its approach and failing to engage constructively or provide access to due diligence.
Reaction to the Proposal
The increased offer has been met with a mixed reaction from Auction Technology’s shareholders. While the share price has risen significantly, another top shareholder has stated that the latest offer is not good enough. The shareholder, who did not wish to be named, told Reuters that the offer "does not come close to reflecting Auction Technology Group’s intrinsic value" and that the flurry of insubstantial offers reinforces the impression that this is an opportunistic and time-consuming fishing expedition. FitzWalter, on the other hand, has urged Auction Technology shareholders to pressure the board to engage in negotiations before a February 2 deadline, by which the suitor must make a firm offer or walk away.
FitzWalter’s Strategy
FitzWalter’s partner, Andrew Gray, has stated that the firm’s proposal would give shareholders certainty to realise a cash offer at an attractive premium, compared to trusting a board that has consistently failed to deliver shareholder value. The firm has been critical of Auction Technology’s management, and has accused them of failing to deliver shareholder value. By urging shareholders to pressure the board to engage in negotiations, FitzWalter is hoping to gain support for its proposal and increase the likelihood of a successful takeover.
Implications of the Proposal
The proposal has significant implications for Auction Technology’s future. If the firm is successful in its takeover bid, it is likely that there will be significant changes to the company’s management and strategy. FitzWalter has already expressed its dissatisfaction with the company’s current management, and has accused them of making poor business decisions. On the other hand, if the proposal is rejected, Auction Technology will need to convince its shareholders that it has a strong strategy in place to deliver shareholder value. The company’s share price has lost nearly half of its value in 2025, and the firm will need to demonstrate that it can reverse this decline and deliver growth and profitability.
Conclusion
In conclusion, FitzWalter Capital’s increased buyout proposal for Auction Technology Group has sent the company’s shares soaring. However, the proposal has been met with a mixed reaction from shareholders, with some expressing dissatisfaction with the offer and others urging the board to engage in negotiations. The outcome of the proposal is uncertain, but one thing is clear: the future of Auction Technology Group hangs in the balance, and the company’s shareholders will be watching closely to see what happens next.
