Auction Technology Group plc (LON:ATG) has rejected a possible cash offer of 400 pence per share from FitzWalter Capital Limited, stating the proposal “fundamentally undervalues” the company and its future prospects.

The ATG board met on Sunday to consider the indicative offer, which was announced by FitzWalter on January 16.

In a statement released Monday, ATG noted that no customary letter outlining the full terms and conditions of the offer had been received, with FitzWalter’s financial adviser Macquarie Capital confirming such a letter would not be provided.

“The Board will continue to act in the best interests of all stakeholders and remains confident in ATG’s standalone prospects,” said Scott Forbes, Chair of ATG. “The Board, mindful of its fiduciary duties, stands ready to constructively engage with FitzWalter, or any other party, if a comprehensive proposal that reflects fair value is presented to it.”

ATG shareholders have been advised to take no action at this time. The company plans to provide an update on its progress during its AGM Trading Update scheduled for January 22.

Under takeover rules, FitzWalter must announce either a firm intention to make an offer or declare it does not intend to make an offer by 5:00pm on February 2, which is 28 days after ATG first announced FitzWalter’s possible offer on January 5.

BofA Securities and Deutsche Numis are acting as financial advisers to ATG, with Latham & Watkins serving as legal adviser.