For sale are its operations in Brazil, Argentina, Peru and Paraguay, and talks to sell its Chilean unit, Santa Isabel, to Chilean group Cencosud are already underway.

Ahold's operations in the US and Argentina are currently the subject of investigations into accounting irregularities.

In February, Ahold announced accounting irregularities at its US Foodservice business, where profits were overstated by more than $500m (�319m), and it is now under investigation by the Securities & Exchange Commission (SEC).

The SEC probe has extended to other food companies, with requests for information from Kraft Foods, General Mills and H.J. Heinz, three of several large manufacturers that supply goods to US Foodservice for distribution further downstream to hotels, restaurants and other customers.

Chief Executive Cees van der Hoeven and Finance Director Michiel Meurs stepped down shortly afterwards.

Cutting debt

Ahold said devaluation of its assets in Latin America and accounting irregularities had cut the region's profitability.

"Although we intend to proceed expeditiously with our divestment plan, we are determined to maximise the value we receive for these operations and obtain the best possible result for all stakeholders," an Ahold board member said in a statement.

The expected 500m euros (�344m; $539m) in proceeds will help to stabilise Ahold's financial position and contribute to cutting its debt, which stood at 12.3bn euros last October.

More sales are expected in Asia and Europe in line with a divestment plan announced in November.

Shares in Ahold, which have fallen by two-thirds since February, climbed by 4.6% to 3.37 euros after announcing the sale.

Troubled chain

Chile's stock market regulator suspended trade in Ahold's Santa Isabel on Tuesday for failing to report its 2002 results on time.

On Wednesday Santa Isabel reported a loss in 2002 of 34bn pesos (�29.3m; $45.9m), 168% higher than in the previous year, without giving an explanation.

The regulator said trade in Santa Isabel shares will resume on Friday.

In Argentina, the Disco subsidiary will be sold when the 2002 accounts and a regulatory investigation are finalised.

The Disco operation is also being investigated by a Uruguayan judge over allegations of fraud at Uruguayan investment company Velox, Ahold's one-time partner in Argentina.

Ahold bought into Disco in 1998 and acquired Velox's stake when the Uruguayan company went bankrupt in 2002.

Ahold will sell its three wholly owned operations in Brazil, Bompreco, G. Barbosa and Hipercard.