We have already sold 10 nightclubs and a number of individual outlets. We expect that the balance of the 740 planned disposals will be completed in the near future

Brian Stewart Scottish & Newcastle

"These disposals will leave us with a business of high quality assets, with sharper focus and clear opportunities for growth," said chairman Brian Stewart.

The pubs were sold for �354m ($498m) to two buyers.

A subsidiary of Enterprise Inns, a group that specialises in tenanted pubs, bought 432 pubs for �260m plus �3.6m in working capital.

"We believe that the managed pubs in this estate can be operated more profitably as leases and tenancies and we will be adopting the conversion process that has been so successful for us in the past," said Enterprise Inns chairman Hubert Reid.

The remaining 214 pubs were bought by the leisure entrepreneur Robert Breare and his Noble House Leisure who paid �94m plus �3.1m in working capital.

We are delighted to have completed this.

Brian Stewart Scottish & Newcastle

As part of the deals, Scottish & Newcastle will spend �111m to buy out British Land which had owned stakes in about a quarter of the pubs sold.

Scottish & Newcastle will spend the net proceeds of �243m to cut its debts.

Changed strategy

The sell-off brings Scottish & Newcastle's planned pub disposals programme close to an end; the group now only has about 70 pubs and themed restaurants left to sell.

"We are delighted to have completed this major part of our restructuring," said Mr Stewart.

The sales are part of Scottish & Newcastle's plan to focus on its brewing business and on operating 1,450 large managed pubs.

"We have already sold 10 nightclubs and a number of individual outlets. We expect that the balance of the 740 planned disposals will be completed in the near future."

Scottish & Newcastle shares rose more than 2% on the news. Enterprise shares fell.