Benzinga | Aug 16, 2021 04:19PM EDT

Inside Sanofi's $3.2B Translate Bio Buyout

* Before the $3.2 billion acquisition of mRNA player Translate Bio Inc (NASDAQ:TBIO) earlier this month, Sanofi SA (NASDAQ:SNY) expressed interest in selling off around 25% of its shares in the company, which it had been working with since 2018.

* Translate Bio filed SEC document to give an inside look at how the buyout negotiations played out. Translate agreed to that plan, but it didn't last long.

* Sanofi CEO Paul Hudson reached out to Translate CEO Ron Renaud in late May, indicating that Sanofi was now interested in buying Translate outright. The initial offer came in at $28 per share.

* Translate asked its consultants to test the waters for other potential suitors as part of its due diligence on a possible deal. Feelers put out to three companies that turned up duds, with all three showing no interest in engaging.

* On June 4, Translate told Sanofi that its initial offer was "insufficient" and undervalued the company. Sanofi responded with a 55% premium offer, but Translate asked for $40 per share as a final offer.

* In response, Translate asked Sanofi an offer of $37 to $38 per share with milestones baked in to get shareholders $40 per share.

* Sanofi countered with an offer of $35 and eventually agreed to come up to $38.

* The acquisition also makes sense in Sanofi's plans to make mRNA a centerpiece of its business plan moving ahead.

* In June 2020, Sanofi laid out $425 million in cash upfront and up to $1.9 billion in milestones payments to accelerate its partnership with Translate, signed initially in mid-2018.

* Price Action: SNY stock closed up 0.21% at $51.87, while TBIO shares closed down 0.21% at $37.66 on Monday.