The new offer, which is 3p or 4.5% more than the previous approach from M&G, was lodged this morning.
UKML said it continues to believe in the quality of the portfolio, the robustness of its net asset value methodology and the quality of the investment management services provided by TwentyFour Asset Management.
“The board believes that the terms of the final possible offer continue to undervalue the company and its prospects”, it said.
This valuation is not recommendable to shareholders, it added, and therefore “sees no basis for engagement on this final possible offer”.
UKML has said already that it will instigate a review of its business once the bid period ends to enhance liquidity and narrow the discount of the shares to NAV.
UKML shares rose 3% to 65.25p.