Company: PENG
Filing Date: 2025-05-02
Form Type: DEF 14A
Source: 0001193125-25-110748
Chunk: 67

Company: Penguin Solutions, Inc.
Filing Date: 2025-05-02
Form: DEF 14A
Chunk 67
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 (as determined under
U.S. federal income tax principles), such excess will be treated first as a tax-free return of the U.S. Holder’s tax basis in the shares of Penguin Solutions Delaware common stock, and then, to the extent
such excess amount exceeds the U.S. Holder’s tax basis in the shares of Penguin Solutions Delaware common stock, as capital gain. Subject to applicable limitations and requirements, dividends received on Penguin Solutions Delaware’s shares
of common stock generally should be eligible for the “dividends received deduction” available to corporate stockholders. A dividend paid by Penguin Solutions Delaware to certain non-corporate U.S.
Holders, including individuals, generally will be subject to taxation at preferential rates if certain holding period requirements are met.

Dispositions of Shares of Penguin Solutions Delaware Common Stock

A U.S. Holder will generally recognize taxable gain or loss on any sale, taxable exchange or other taxable disposition of a Penguin Solutions
Delaware share of common stock equal to the difference between the amount realized for such Penguin Solutions Delaware share of common stock and the U.S. Holder’s adjusted tax basis in such Penguin Solutions Delaware share of common stock. Any
such gain or loss will generally be capital gain or loss and will be long-term capital gain or loss if, on the date of the disposition, the U.S. Holder has a holding period in such Penguin Solutions Delaware share of common stock that exceeds one
year. Long-term capital gains derived by certain non-corporate U.S. Holders, including individuals, are generally subject to taxation at preferential rates. The deductibility of capital losses is subject to
limitations.

Information Reporting and Backup Withholding

Dividend payments with respect to shares of Penguin Solutions Delaware common stock and proceeds of a disposition of shares of Penguin
Solutions Delaware common stock will generally be subject to information reporting to the IRS and may be subject to U.S. backup withholding unless a U.S. Holder furnishes such U.S. Holder’s correct U.S. taxpayer identification number (generally
on IRS Form W-9) and complies with other applicable certification requirements, or otherwise establishes an exemption. Backup withholding is not an additional tax. Amounts withheld under the backup withholding
rules will be credited against a U.S. Holder’s federal income tax liability, and may entitle a U.S. Holder to a refund, provided that the required information is furnished to the IRS in a timely manner.

Material U.S. Federal Income Tax Consequences of the Scheme of Arrangement to Non-U