By Colin Kellaher


American depositary shares of Sequans Communications tumbled more than 30% in premarket trading Friday after Renesas Electronics called off plans to acquire the provider of 5G/4G cellular IoT chips and modules in a deal valued at about $249 million.

Tokyo-based chip maker Renesas said it exercised its right to terminate the deal after Japan's National Tax Agency said the company would be required to recognize taxable gain related to the transaction.

Renesas last August said it would pay $3.03 per ADS in cash for Sequans, a more than 42% premium to the French company's then-trading price.

Sequans ADSs, which closed Thursday at $2.56, were recently down more than 31% to $1.76 in premarket trading.


Write to Colin Kellaher at colin.kellaher@wsj.com


(END) Dow Jones Newswires

02-23-24 0630ET