TransAlta eyes more asset sales, says in no rush

(In U.S. dollars)

CALGARY, Alberta, Feb 21 (Reuters) - TransAlta Corp TA.TO may sell its power plants in Australia and Ontario, but is under no pressure to do so and will wait for the right time, Chief Executive Steve Snyder said on Thursday.

The company, Canada's biggest publicly traded electricity generator, would redeploy proceeds from such sales to its extensive operations in the western parts of North America, Snyder said a day after announcing a $303.5 million deal to jettison its Mexican assets.

"The only one issue in Australia is time," he told an investor conference in Whistler, British Columbia.

"They are extremely profitable assets in a growing market and we have to find the right time and right buyer to ensure that if we are to sell those assets it's not dilutive to current shareholders."

TransAlta, which has been resisting pressure from a U.S. investor to take on more debt to fund major stock buybacks, has stakes in two power plants in Western Australia generating a total of 355 megawatts.

Ontario asset sales would be more complex due to a partnership structure that combines assets in the province with some in Alberta, Snyder said.

TransAlta sold its interest in the limited partnership last year to Cheung Kong Infrastructure Holdings Ltd (1038.HK: Quote, Profile, Research), a firm controlled by Hong Kong billionaire Li Ka-shing.

The four power plants in Ontario are making money for TransAlta, Snyder said.