(Yicai Global) Feb. 13 -- Chinese medical conglomerate Fosun Pharmaceutical Group Co. aims to increase its presence in the south of the country by taking a majority2 stake in a hospital located in Foshan city in Guangdong province.

The Shanghai-based group will increase its share in Chancheng Central Hospital to 85.4 percent from 21.4 percent at present through a deal worth CNY750 million (USD118 million), the company said in a statement.

Fosun Pharma has already agreed the deal to take over equity held by the hospital's general manager Xie Dazhi, who will retain a 0.6 percent stake after completion.

The deal will help Fosun Pharma to optimize equity structure, help with the integration of Fosun's internal resources at the hospital and also boost company efforts to expand its medical service business in south China, the firm said.

Founded in 2013, Chancheng Central Hospital is a Class-three and Grade-A general hospital with 1,200 beds. Turnover reached CNY1.17 billion in 2016, while net profit was CNY176 million.