The Abercrombie Group withdraws takeover offer for Humm Group

The news: The Abercrombie Group (TAG) has withdrawn its takeover proposal of buy now, pay later business Humm Group.

The context: The decision by both parties follows criticism of Humm Group's chair, founder and major shareholder Andrew Abercrombie, after his family office TAG made a non-binding offer to acquire the company for 58 cents per share. The target's shares last traded at 61 cents.

What they said: "TAG's funded scheme proposal was intended to provide an opportunity for shareholders to fully realise their investment in Humm Group at a 35% premium to the undisturbed trading price, where shareholders would have the ultimate say," said Ambercrombie.

"Since submitting our proposal, it has become evident that it does not currently have the support of several key shareholders."