IEG Holdings Corp. has decided to withdraw its tender offer for approximately 4.99% of LendingClub Corp.'s outstanding common shares.

IEG Chairman and CEO Paul Mathieson said the company will terminate the offer because the SEC expressed concern that it was improperly commenced.

Under the deal, IEG would have exchanged 13 common shares for each LendingClub common share, up to an aggregate of 20,701,999 LendingClub common shares.

IEG previously canceled an unsolicited tender offer to exchange its shares for LendingClub shares after its share price dropped significantly following the start of the offer.