Hexicon buys out Shell's stake in 1-GW Korean floating wind JV

Swedish floating wind specialist Hexicon AB (STO:HEXI) said today it has clinched a deal to acquire full ownership of its joint venture with Shell plc (AMS:SHELL) that develops the 1,125-MW MunmuBaram floating wind project off South Korea.

The Swedish company, which already owns a 20% stake in the project company, will buy the remaining 80% from Shell Overseas Investments BV and thus become its sole owner.

The terms of the deal call for an initial payment of USD 5 million (EUR 4.6m) and include a profit-sharing arrangement of up to USD 50 million over three years. It transaction, which is pending regulatory clearance, was enabled by a EUR-45-million debt facility that Hexicon secured last year from fund manager Glennmont Partners.

The MunmuBaram project was originated in 2018 by Hexicon Korea and envisages the construction of a floating offshore wind farm off the coast of Ulsan City, in the southeastern region of South Korea. Hexicon said it will work to move the scheme through the government permitting process with the existing licences.

“Through this transaction, South Korea remains a core market for Hexicon and strengthens our position as a leading global developer of floating offshore wind,” said Marcus Thor, CEO of Hexicon.

(EUR 1.0 = USD 1.086)

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