Dec. 24 (Bloomberg) -- Cadbury Plc, the world’s largest candy maker, agreed to sell its Australian beverages division to Asahi Breweries Ltd. for 550 million pounds ($811 million), completing the U.K. company’s exit from the drinks industry.

The net proceeds will go toward repaying a 600 million-euro ($839 million) bond that matures in June 2009, London-based Cadbury said today in a statement. The transaction is subject to a so-called right of negotiation granted to Coca-Cola Co. in 1999, which gives the world’s biggest soft-drink maker rights to negotiate a purchase of the unit until March 2009.

The sale completes Cadbury’s transformation to a dedicated confectionary maker after the company spun off its U.S. soft- drinks unit, Dr Pepper Snapple Group Inc., in May. The maker of Trident gum said on Dec. 16 that it planned to dispose of the division, which employs about 1,500 people and had revenue of about A$749 million ($511 million) last year.

“They’ve realized a very decent exit price,” Martin Deboo, an analyst at Dresdner Kleinwort in London, said in an interview. “In the current climate, it’s a positive move that will allow them to reduce net debt by around one quarter.” Deboo has a “hold” recommendation on Cadbury shares.

Cadbury fell 5.5 pence, or 0.9 percent, to 586 pence at 10:31 a.m. in London trading, similar to the percentage drop in the U.K. benchmark FTSE 100 Index.

If no agreement is reached with Coca-Cola, the sale of the unit to Asahi will complete by April 30, said Cadbury, which was advised on the transaction by UBS AG.

“The successful sale of Schweppes Australia will complete Cadbury’s divestment of its beverage operations,” Chief Executive Officer Todd Stitzer said in the statement. “Cadbury will focus solely on growing its chocolate, gum and candy portfolio.”

Schweppes Australia is the country’s second-largest non- alcoholic drinks maker and had gross assets of 279 million pounds in the year ended Dec. 31 2007, Cadbury said.

To contact the reporter on this story: Andrew Cleary in London at acleary7@bloomberg.net.

Last Updated: December 24, 2008 05:41 EST