Company: TGE
Filing Date: 2025-06-24
Form Type: F-1
Source: 0001213900-25-057225
Chunk: 190

Company: Generation Essentials Group
Filing Date: 2025-06-24
Form: F-1
Chunk 190
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 we redeem Warrants for cash pursuant to the redemption provisions of the Warrants or purchase Warrants in an open
market transaction, such redemption or purchase will generally be treated as a taxable disposition of such Warrants by the U.S. Holder,
taxed as described above under “—Taxation on the Disposition of the Securities.”

PFIC Considerations

Definition of a
PFIC

A foreign (i.e., non-U.S.)
corporation will be a PFIC for U.S. federal income tax purposes if at least 75% of its gross income in a taxable year of the foreign
corporation, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25% of the
shares by value (a “Look-Through Subsidiary”), is passive income. Alternatively, a foreign corporation will be a PFIC if at
least 50% of its assets in a taxable year of the foreign corporation, ordinarily determined based on fair market value and averaged quarterly
over the year, including such foreign corporation’s pro rata share of the assets of any Look-Through Subsidiary (and excluding the
value of the shares held in such corporation), are held for the production of, or produce, passive income (for these purposes including
cash and cash equivalents). Passive income generally includes dividends (excluding any dividends received from a Look-Through Subsidiary),
interest, rents and royalties (other than certain rents or royalties derived from the active conduct of a trade or business) and net gains
from the disposition of passive assets.

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PFIC Status of TGE

Based on the current and anticipated
value of the assets and the composition of the income and assets, including goodwill and other unbooked intangibles, of TGE and its subsidiaries,
TGE does not currently expect to be a PFIC for the current taxable year ending December 31, 2025 or foreseeable future taxable years.
However, this conclusion is a factual determination that must be made annually at the close of each taxable year on the basis of the composition
of the income and assets, which may fluctuate, of TGE and its subsidiaries, and, thus, is subject to change. Accordingly, there can be
no assurance that TGE or any of its subsidiaries will not be a PFIC for any taxable year. Furthermore, fluctuations in the market price
of the Class A Ordinary Shares may cause TGE