FitzWalter Capital Challenges Auction Technology Group’s Claims
Investing.com – On Monday, FitzWalter Capital Limited issued a formal statement disputing recent assertions made by Auction Technology Group plc (LON: ATG) regarding the company’s long-term value creation and prospects for acquisition.
Dispute Over Shareholder Value and Performance
FitzWalter Capital criticized ATG’s claims that it has provided “long-term shareholder value enhancement,” pointing out that ATG’s stock price has fallen significantly—down 51% over the past year and 82% in the last four years. The investment firm went further, accusing the ATG board of leading what it described as “severe destruction of shareholder value.”
According to the statement, FitzWalter highlighted ATG’s costly acquisition of Chairish, which was a loss-making business at the time of purchase. The acquisition reportedly cost around $100 million, and the announcement on August 4, 2025, caused ATG’s stock price to drop by 21.7%. FitzWalter also flagged that ATG’s adjusted EBITDA declined for the first time since listing, countering the board’s positive outlook.
Concerns About Strategic Decisions and Transparency
Responding to ATG’s characterization of FitzWalter’s involvement as “constructive engagement,” the investment firm expressed skepticism. FitzWalter recalled that in September 2025, the ATG board revealed intentions to sell the I&C division — which contributed approximately 45% of the group’s adjusted EBITDA that year — to fund follow-up acquisitions. However, the board has not formally initiated a sales process for this unit, raising concerns over the board’s commitment to maximizing shareholder value.
Andrew Gray of FitzWalter Capital commented that the board’s confidence in ATG’s prospects appears “completely detached from their performance.” He criticized the board for preventing shareholders from voting on potential divestitures, acquisitions, or takeover proposals, thereby restricting shareholder influence on the company’s strategic direction.
Upcoming Deadline Under UK Takeover Rules
Under UK takeover regulations, FitzWalter is required to make a firm statement about its intentions regarding a takeover bid by February 2, 2026—either declaring a firm intention to offer or formally stating it does not intend to proceed.
Background on FitzWalter Capital
FitzWalter Capital was established in 2020 and is a global private equity firm managing approximately $2.4 billion on behalf of pension funds, sovereign wealth funds, endowments, and other investors.
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