Company: TGE
Filing Date: 2025-05-06
Form Type: F-4/A
Source: 0001213900-25-040058
Chunk: 380

Company: Generation Essentials Group
Filing Date: 2025-05-06
Form: F-4/A
Chunk 380
---
 supervision over the administration of such trust and one or more U.S. persons have the authority to control all substantial decisions of the trust or (2) it has a valid election in place to be treated as a U.S. person. Effects of the Business Combination Characterization of the Business Combination.The U.S. federal income tax consequences of the Business Combination will depend on whether the Business Combination is a taxable exchange of BSII Securities for TGE Securities and the Non -RedemptionPayment Amount or, alternatively, qualifies as a tax -freereorganization within the meaning of Section 368(a) of the Code (a “reorganization”). To qualify as a reorganization, a transaction must generally satisfy certain requirements, including, among others, that the acquiring corporation continue, either directly or indirectly through certain controlled corporations, a significant line of the acquired corporation’s historic business or use a significant portion of the acquired corporation’s historic business assets, in each case, within the meaning of Treasury Regulations Section 1.368 -1(d). Some or all of these requirements may not be satisfied if a substantial portion of the BSII Securities are redeemed in connection with the merger. Due to the absence of guidance regarding the application of this requirement to the particular facts of the Business Combination (namely, the case of an acquisition of a corporation with only investment -typeassets such as BSII), the U.S. federal income tax treatment of the Business Combination is subject to significant uncertainty. BSII and TGE intend to treat the Business Combination as a taxable exchange of BSII Securities for TGE Securities for U.S. federal income tax purposes. The closing of the Business Combination is not conditioned upon the receipt of an opinion of counsel of such treatment, and neither BSII nor TGE intends to request a ruling from IRS regarding the U.S. federal income tax treatment of the Business Combination. Accordingly, there can be no assurance that the IRS will not challenge such treatment nor that a court will not sustain such position. Consequences if the Business Combination is Treated as a Taxable Transaction.If, as is intended by BSII and TGE, the Business Combination is a taxable exchange for U.S. federal income tax purposes, a U.S. Holder that exchanges BSII Securities for TGE Securities will generally recognize gain or loss in an amount equal to the difference, if any, between (i) the sum of the fair market value of TGE Securities received by such holder and the Non -RedemptionPayment Amount received by such holder and (ii) such holder’s adjusted tax