What's the appropriate risk premium vis-a-vis DLS then? 23%?...

What's the appropriate risk premium vis-a-vis DLS then? 23%? Let's not forget this is not necessarily an annualised risk premium/differential, as AQO holders can sell either their Magnum or DLS share immediately.

I see Magnum and DLS as roughly equivalent risk, overall? One is bigger, has more assets but more debt? DLS is priced as a growth stock to, is it not?

The recommendation also fails a basic test of logic, too. If DLS are better value (and lower) risk, AQO holders can accept the Magnum offer, sell the shares (perhaps lose 1-2% on transaction costs) and buy DLS.