(Yicai Global) Nov. 13 -- Shanghai Fosun Pharmaceutical (Group) Co. [SHA:600196; HK:2196] said yesterday that its holding subsidiary plans to acquire 60 percent of Shenzhen Hengsheng Hospital's equity for USD137 million (CNY909 million) to improve the company's medical service network and expand the scope of its business.
Shenzhen Hengsheng Hospital will be included in Fosun Pharmaceutical's consolidated statements after the transaction is completed.
Established in 2004, Shenzhen Hengsheng Hospital is a for-profit medical institution in downtown Shenzhen with a building area of nearly 95,000 square meters. It is surrounded by several residential complexes. The facility is one of the largest privately-owned top-tier for-profit general hospitals in Shenzhen.
Shenzhen Hengsheng Hospital's main business income and net profit were CNY320 million and CNY40.37 million last year, and it served nearly 600,000 patients. The hospital's income and net profit were CNY160 million and CNY13.96 million in the first half of this year.
After the deal, Shenzhen Hengsheng Hospital will become Fosun Pharmaceutical's regional medical service platform in Shenzhen and help the drug producer expand its presence in South China's medical services market.
Shenzhen Hengsheng Hospital and Fosun Pharmaceutical's hospitals in Foshan and Guangzhou in Guangdong province will form a medical services network for developed cities and regions near the mouth of the Pearl River.
Shenzhen Hengsheng Hospital will also be the training center for Fosun Pharmaceutical's other member hospitals to enhance medical management, technology and services, and strengthen Fosun Pharmaceutical's offerings.