Malaysia's Lion Diversified Holdings is looking to pull out of its China-based breweries, according to press reports. Citing unnamed sources, the Star said that the Malaysian company is expected to exercise its put and call option to sell the remaining 50% stake in its Chinese beer operations.

The newspaper said Lion Diversified will exercise the option in January 2005.

Earlier this year, Lion Diversified sold 50% of its beer operations in China to Interbrew, reaping an exceptional gain of MYR380m (US$99.9m) for the year to June 2004.