Telecom is to sell its part of its Australian arm, AAPT, to internet provider iiNet for $75 million.
The deal requires the approval of iiNet's shareholders and regulators.
Telecom says it has also sold its 18% stake in iiNet for about $86 million.
Alongside the sale of a 10% stake in Macquarie Telecom on Thursday, Telecom says it will gain about $175 million.
Trading in iiNet's shares was halted on Thursday. Telecom's shares rose 1c to $2 before the trading halt was requested by the company.