Company: TGE
Filing Date: 2025-04-11
Form Type: F-4
Source: 0001213900-25-031177
Chunk: 184

Company: Generation Essentials Group
Filing Date: 2025-04-11
Form: F-4
Chunk 184
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 qualify as a reorganization, and there can be no assurance that it will so qualify. 110 If the merger is a taxable exchange for U.S. federal income tax purposes, U.S. Holders that do not exercise their redemption rights will generally be required to recognize gain or loss equal to the difference between (i) the sum of the fair market value of TGE Securities received in the merger and the Non -RedemptionPayment Amount received by the U.S. Holder and (ii) the U.S. Holder’s adjusted tax basis in the Black Spade II Securities exchanged in the merger. The character of such gain will depend on the application of the PFIC rules discussed below and whether the U.S. Holder has made a QEF Election (as defined below) or mark -to -marketelection with respect to its BSII Class A Ordinary Shares. If the merger were to qualify as a reorganization, U.S. Holders that do not exercise their redemption rights generally would recognize gain (but not loss) for U.S. federal income tax purposes on the exchange of the Black Spade II Securities for the TGE Securities and the Non -RedemptionPayment Amount pursuant to the merger, in an amount equal to the lesser of (i) the U.S. Holder’s gain realized (i.e., the excess, if any, of (x) the sum of the fair market value of TGE Securities received by the U.S. Holder and the Non -RedemptionPayment Amount received by the U.S. Holder and (y) the U.S. Holder’s adjusted tax basis in the BSII Securities exchanged in the merger) and (ii) the Non -RedemptionPayment Amount. Furthermore, even if the merger does qualify as a reorganization, the proposed Treasury Regulations promulgated under Section 1291(f) of the Code (which have a retroactive effective date) generally require that, unless certain elections have been made by a U.S. Holder, a U.S. Holder who transfers stock of a PFIC must recognize gain (if any) equal to the excess of the fair market value of such PFIC stock over its adjusted tax basis, notwithstanding any other provision of the Code. Black Spade II anticipates that it will be treated as a PFIC for its current taxable year. As a result, if these proposed Treasury Regulations are finalized in their current form, a U.S. Holder of BSII Class A Ordinary Shares may be required to recognize additional gain under the PFIC rules on the exchange of BS