Hexicon to take full ownership of South Korean floating offshore wind project

Today Hexicon AB (publ.) signed a Sales and Purchase Agreement (SPA) to take full ownership
of MunmuBaram Co., Ltd. from its joint venture partner Shell Overseas Investments B.V. Under
the agreement, Hexicon AB will increase its stake in the project from 20 % to 100 %, increasing
the project portfolio by 900 MW. Completion of the transaction is subject to regulatory
approval.
The MunmuBaram project, originally initiated 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.
Hexion’s full ownership of the MunmuBaram project is enabled through the support of Glennmont
Partners, one of Europe’s largest infrastructure funds focused on clean energy. The commitment
in the agreement falls within the existing framework of Hexicon’s Glennmont loan facility. The
purchase price for the acquisition will be paid with a first down payment of US$5 million. In
addition, the SPA includes a profit-sharing arrangement of up to US$50 million over a three-year
period.
In the event that Hexicon sells its shares in MunmuBaram, the size of the profit-sharing will depend
on several parameters, including the timing and the net proceeds. Hexicon has already started the
process of setting the long-term ownership structure for MunmuBaram, as well as the process for
government approvals to proceed with existing licenses. In the short term, Hexicon will reallocate
resources to optimise value in the project whilst working in close collaboration with Shell to ensure
a smooth transition. Once concluded, the Munmubaram project will represent ~15% of Hexicon’s
net portfolio in terms of megawatts (MW).
“South Korea continues to be a leading market with good conditions for the development of
floating offshore wind. Through this transaction, South Korea remains a core market for Hexicon
and strengthens our position as a leading global developer of floating offshore wind,” says Marcus
Thor, CEO of Hexicon AB.

About Hexicon
Hexicon is an early project-developer in floating wind, opening new markets in deep water areas,
and a technology provider with a patented floating wind design – TwinWind™. The dual business
model supports the world’s transition to sustainable energy. Floating wind is an important part of
the future energy mix. It can be deployed quickly and at scale, contributing to the electrification of
society at large. Hexicon operates in several markets across Europe, Africa, Asia, and North
America. Hexicon is listed on Nasdaq First North Premier Growth Market (ticker HEXI). Certified
Adviser is FNCA Sweden AB.