Shareholders in Allied Domecq yesterday approved the sale of its British retailing interests to privately-owned Punch Taverns in a £2.75 billion sterling (#4.18 billion) deal. The move will allow Allied to focus on its international spirits business and its quick-serve restaurants Dunkin' Donuts and Baskin-Robbins.

The chairman, Mr Christopher Hogg, told shareholders that the cost of the pubs deal was £40 million, which after subtracting £13 million for stamp duty, was equivalent to around 1 per cent of the sale's value.

Punch is buying Allied's 3,500 UK pubs, its 25 per cent stake in Britannia - the holding company of soft drinks group Britvic - and a half share in drinks store venture First Quench. Punch, 70 per cent owned by US venture capital group Texas Pacific, has agreed to sell on up to 650 of Allied's larger managed houses and the Britannia stake to Bass Plc.