Gelonghui, June 15 - According to the UBS Development Research Report, Changhe (0001.HK) announced that it has reached a merger agreement with Vodafone for the UK telecommunications business. The bank believes that the merger has a synergistic effect and is beneficial to the Group. According to the announcement, MergeCo's initial debt was £6 billion, all belonging to Vodafone. Changhe will receive 1.7 billion Canadian dollars in cash and 49% of its shares in MergeCo at the end of the deal. After three years, there are put options and call options to withdraw them. The bank said the cost synergies are expected to be £700 million per year, with a net present value of £7 billion. The synergies and debt repayment could increase the Group's net asset value by HK$12 per share. The merger is subject to shareholder and regulatory approvals, and the deal is expected to be completed by the end of next year. The Group's current transaction price is 52% off net asset value. The stock is currently reported at HK$48.9, with a total market value of HK$187.3 billion.