New Zealand-based Telecom Corp Ltd has exited its Australian AAPT unit to internet service provider TPG Telecom Ltd. The said transaction is valued at USD450 million, according to Business Spectator.

The sale, which is managed by Goldman Sachs, is expected to close on February 28. The proceeds from the sale will be used for debt repayment in the first intance, the report said.

With Simon Moutter as the new chief executive, Telecom has been focusing on changing its market strategy. The firm has been targeting mobile and data revenue and moving away from its role as a simple infrastructure player, the report explained.

The New Zealand firm sold its AAPT consumer unit to iiNet for USD60 million, leaving it with wholesale customers as the main composition of its network. Telecom's Australian unit has been a chronic underperformer since 1999. The AAPT posted a 16% plunge in earnings to NZD74million in the fiscal year that endedn on June 30 on a 22% sales slump to NZD515 million, the report detailed.

AAPT lost clients when the Australian Federal government rolled out its national broadband network, Business Spectator reported.