Premiums to current prices are less relevant for scrip mergers as it really comes down to your view on the relative fundamental value of the stock being offered. With that in mind, Santos' performance has been much better post COVID than OSH (nearing its pre COVID levels) so I would conclude that OSH is cheaper compared to STO for stock specific reasons. Bear in mind, management issues can be short term, even 2 years of cash flows are pretty small in the grand scheme of overall value. OSH still has fundamentally good assets, so if Santos can get OSH with a 4 handle in front of it, its doing very well.
I can see the synergies with combining the two, but at $4.25-4.50, i'd take my chances with OSH realising that value by itself. It traded at c.$4.25 only a couple months ago in March...
