Company: TGE
Filing Date: 2025-04-11
Form Type: F-4
Source: 0001213900-25-031177
Chunk: 383

Company: Generation Essentials Group
Filing Date: 2025-04-11
Form: F-4
Chunk 383
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 described above under “— Taxation on the Disposition of TGE Securities.” 249 Possible Constructive Distributions The terms of each TGE Warrant provide for an adjustment to the number of TGE Class A Ordinary Shares for which the warrant may be exercised or to the exercise price of the warrant in certain events. An adjustment that has the effect of preventing dilution is generally not taxable to U.S. Holders of TGE Warrants. However, the U.S. Holders of TGE Warrants would be treated as receiving a constructive distribution from TGE if, for example, the adjustment increases the warrant holder’s proportionate interest in TGE’s assets or earnings and profits (e.g., through an increase in the number of TGE Class A Ordinary Shares that would be obtained upon exercise) as a result of a distribution of cash to the holders of TGE Class A Ordinary Shares that is taxable to the U.S. Holders of such TGE Class A Ordinary Shares as a distribution as described above under “— Taxation of Dividends and Other Distributions on TGE Class A Ordinary Shares.” Such a constructive distribution to the U.S. Holders of the warrants would be subject to tax as described under that section in the same manner as if the U.S. Holders of the warrants received a cash distribution from TGE equal to the fair market value of the increase in the interest. A U.S. Holder’s adjusted tax basis in an TGE Warrant would generally be increased to the extent any such constructive distribution is treated as a dividend. PFIC Considerations Definition of a PFIC A foreign (i.e., non -U.S.) corporation will be a PFIC for U.S. federal income tax purposes if at least 75% of its gross income in a taxable year of the foreign corporation, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25% of the shares by value (a “Look -ThroughSubsidiary”), is passive income. Alternatively, a foreign corporation will be a PFIC if at least 50% of its assets in a taxable year of the foreign corporation, ordinarily determined based on fair market value and averaged quarterly over the year, including such foreign corporation’s pro rata share of the assets of any Look -ThroughSubsidiary (and excluding the value of the shares held in such corporation), are held for the production of, or produce, passive income (for these purposes including cash and cash equivalents).