Company: TGE
Filing Date: 2025-05-06
Form Type: F-4/A
Source: 0001213900-25-040058
Chunk: 108

Company: Generation Essentials Group
Filing Date: 2025-05-06
Form: F-4/A
Chunk 108
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 for U.S. federal income tax purposes on the exchange of the BSII Securities for the TGE Securities pursuant to the merger. A U.S. Holder’s gain or loss will be equal to the difference between (i) the fair market value of the TGE Securities received in the merger and (ii) the U.S. Holder’s adjusted tax basis in the BSII Securities surrendered in the merger. If the merger were to qualify as a Reorganization, U.S. Holders that do not exercise their redemption rights generally would not recognize gain or loss for U.S. federal income tax purposes on the exchange of the BSII Securities for the TGE Securities pursuant to the merger. However, even if the merger does qualify as a Reorganization, U.S. Holders may be required to recognize gain (but not loss) by reason of the application of the PFIC rules, as described in more detail below under the section titled “ Tax Considerations — U.S. Federal Income Tax Considerations —Effects of the Business Combination — Consequences if the Business Combination is Treated as a Reorganization.” 54 Certain Material Cayman Islands Tax Consequences of the Merger The Cayman Islands currently has no form of income, corporate or capital gains tax and no estate duty, inheritance tax or gift tax. No taxes, fees or charges will payable (either by direct assessment or withholding) to the Cayman Islands government or other taxing authority in the Cayman Islands under the laws of the Cayman Islands in respect of the merger or the receipt of the merger consideration by Black Spade II Shareholders under the terms of the Business Combination Agreement. This is subject to the qualification that (1) Cayman Islands stamp duty may be payable if any original transaction documents, including the merger agreement, are brought to or executed in the Cayman Islands; and (2) registration fees will be payable to the Registrar of Companies of the Cayman Islands to register the Plan of Merger. Regulatory Matters The Business Combination is not subject to any federal or state regulatory requirement or approval, except for filings in the Cayman Islands necessary to effectuate the Business Combination. Anticipated Accounting Treatment The Generation Essentials Group has determined that it is the accounting acquirer based on its evaluation of the facts and circumstances of the acquisition. The purpose of the merger was to assist The Generation Essentials Group with the refinancing and recapitalization of its business. The Generation Essentials Group is the larger of the two entities and is the operating company within the combining companies. The Generation Essentials Group will have