Hexicon has signed a Sales and Purchase Agreement (SPA) to acquire full ownership of MunmuBaram Co., Ltd. from its joint venture partner, Shell Overseas Investments. Under the agreement, Hexicon will increase its stake in the project from 20% to 100%, thereby expanding the project portfolio by 900 MW.
The MunmuBaram project, initially launched by the joint venture Hexicon Korea in 2018, is developing a 1.125 GW floating offshore wind farm planned off the coast of Ulsan City in the southeastern region of South Korea. Hexicon’s acquisition of full ownership of the MunmuBaram project has been facilitated through the support of Glennmont Partners. The commitment outlined in the agreement aligns with the existing framework of Hexicon’s Glennmont loan facility. The acquisition will be funded through a first down payment of US$5 million. Additionally, the SPA includes a profit-sharing arrangement of up to US$50 million over a three-year period.
Hexicon has already initiated the process of establishing the long-term ownership structure for MunmuBaram, as well as seeking government approvals to proceed with existing licenses. Upon completion, the MunmuBaram project will account for approximately 15% of Hexicon’s net portfolio in terms of megawatts. Completion of the transaction is subject to regulatory approval.
