Company: CGCT
Filing Date: 2025-03-05
Form Type: S-1/A
Source: 0001104659-25-020969
Chunk: 304

Company: Cartesian Growth Corp III
Filing Date: 2025-03-05
Form: S-1/A
Chunk 304
---
 actually and constructively owned by the U.S. Holder immediately
before the redemption. Prior to our initial business combination, it is possible that the Class A ordinary shares may not be treated
as voting shares for this purpose and, consequently, this substantially disproportionate test may not be applicable. There will be a
complete termination of a U.S. Holder’s interest if either (i) all of our shares actually and constructively owned by
the U.S. Holder are redeemed or (ii) all of our shares actually owned by the U.S. Holder are redeemed and the U.S. Holder
is eligible to waive, and effectively waives in accordance with specific rules, the attribution of shares owned by certain family members
and the U.S. Holder does not constructively own any other shares of ours (including any shares constructively owned by the U.S. Holder
as a result of owning our warrants). The redemption of the Class A ordinary shares will not be essentially equivalent to a dividend
if such redemption results in a “meaningful reduction” of the U.S. Holder’s proportionate interest in us. Whether
the redemption will result in a meaningful reduction in a U.S. Holder’s proportionate interest in us will depend on the particular
facts and circumstances. However, the IRS has indicated in a published ruling that even a small reduction in the proportionate interest
of a small minority shareholder in a publicly held corporation who exercises no control over corporate affairs may constitute such a
“meaningful reduction.” A U.S. Holder should consult with its own tax advisors as to the tax consequences of a redemption
of any Class A ordinary shares.

If none of the foregoing tests are satisfied,
then the redemption of any Class A ordinary shares will be treated as a corporate distribution and the tax effects will be as described
under “— Taxation of Distributions” above. After the application of those rules, any remaining tax basis
of the U.S. Holder in the redeemed Class A ordinary shares will be added to the U.S. Holder’s adjusted tax basis
in its remaining shares, or, if it has none, to the U.S. Holder’s adjusted tax basis in its warrants or possibly in other
shares constructively owned by it.

U.S. Holders who actually or constructively
own five percent (or if our Class A ordinary shares are not then publicly traded, U.S. Holders who actually or constructively
own one percent) or more of our shares (by vote or value) may be subject to special