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MELBOURNE, Aug 4: Australia's largest alcoholic drinks company Foster's Group Ltd. said it would sell its brewing businesses in India and Vietnam in deals worth US$225 million, marking its exit from brewing in Asia.

The sale follows its exit this year from its China brewery and the sale of its brand in Europe, with the total value of all the transactions exceeding A$1 billion ($758 million), as it overhauls its under-performing international beer division.

Foster's said on Friday that on a combined basis the sale of the businesses in China, India and Vietnam would generate net proceeds of more than A$300 million and eliminate loss-making operations.

The company said that in India it would sell its brewery, local brands and the Foster's brand for $120 million to SABMiller Plc, which also holds the licensing rights for the brand in the United States and is expanding in India.

''While the Foster's brand has enjoyed great success in India, the opportunity for us to continue to grow the brand profitably from a small production and distribution base, in a challenging market structure, was limited,'' Foster's Chief Executive Trevor O'Hoy said in a statement.

Sale of the breweries had been widely expected, but analysts thought Foster's might retain ownership of the brand in India and Vietnam.

O'Hoy said the value achieved from the outright sale of the India business including the Foster's brand far outweighed the potential future value of alternative options.

SABMiller Africa and Asia Managing Director Andre Parker said the acquisition would add much needed capacity to fuel further strong growth in the Indian market.

''With SABMiller's extensive footprint throughout the subcontinent, complemented by Foster's share of Maharashtra and the important Mumbai market, India remains a principal growth market for SABMiller,'' Parker said in a statement.

In Vietnam, Foster's will sell its two breweries, local brands and licence out the Foster's brand to Singapore-based Asia Pacific Breweries Ltd, for $105 million.

The company earlier this year sold its Foster's beer brand in Europe to Scottish&Newcastle Plc and its loss-making China brewery to Japan's Suntory Ltd.

The sales are part of Foster's moves to improve returns from its small international beer division, dwarfed by its domestic beer unit and international wine business.

Foster's overseas brewing division made earnings before interest, tax and amortisation (EBITA) of A$44.4 million in the year to June 30 last year, compared to A$577 million of earnings from its domestic Australian beer division.

Foster's last month also said it would overhaul its business to run it along regional lines as it breaks down divisions between its wine and beer operations.

Shares in the company, which will post its fiscal 2006 result on Aug. 29, last closed at A$5.32, after hitting a four-month low at A$5.25 earlier in the week.

REUTERS