Leisure and hotels group Whitbread has agreed to sell its slice of Pizza Hut for £112 million.
The company will sell its 50 per cent stake in Pizza Hut to Yum! Restaurants, which already owns the other half of the business through a joint venture with Whitbread.
Whitbread, which wants to concentrate on pub restaurants based next to its Premier Travel Inn hotels, plans to use the money to reduce its debts.
Chief executive Alan Parker is overseeing a large disposal programme, which has enabled him to return £810 million to shareholders since May 2005.
He said: "Our exit from this joint venture is further evidence of the continuing progress we are making towards becoming a leaner and more focused group. It will enable us to concentrate our management and capital on those businesses in which we have leading positions and strong growth prospects.
The sell-off has been on the cards since April when Whit-bread, which also owns David Lloyd Leisure and Costa Coffee, said it would be reviewing the nature and size of its investment in Pizza Hut.
The company said in a statement that it will receive £99 million after adjustments for debt and other liabilities.
The deal is expected to be completed in September or early October.
Whitbread has been in partnership with US firm Yum! to run Pizza Hut since 1982. The American food group's other brands include KFC and Taco Bell.
Earlier this month Birmingham-based Harvester chain owners Mitchells & Butlers won the race to land 239 of Whitbread's Brewers Fayre and Beefeater for £497 million.
There have also been rumours US-based Carlson is eyeing up Whitbread's TGI Friday's brand, although a spokesman would only confirm talks are ongoing.