Company: MHLA
Filing Date: 2025-03-26
Form Type: DEFM14A
Source: 0001104659-25-028254
Chunk: 174

Company: Maiden Holdings, Ltd.
Filing Date: 2025-03-26
Form: DEFM14A
Chunk 174
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 and no assurance can be provided as to whether Bermuda NewCo will be a U.S. real property holding corporation with respect to a Non-U.S. Holder at any future time.

Distributions with Respect to Bermuda NewCo Common Shares Held by Non-U.S. Holders Following the Combination

Distributions made with respect to Bermuda NewCo common shares following the combination generally will constitute dividends for U.S. federal income tax purposes to the extent paid from Bermuda NewCo’s current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of Bermuda NewCo’s current and accumulated earnings and profits, will constitute a return of capital that will be applied against and reduce (but not below zero) the Non-U.S. Holder’s adjusted tax basis in Bermuda NewCo common shares. Any remaining excess will be treated as gain realized on the sale or other disposition of Bermuda NewCo common shares and will be treated as described in the section of this proxy/prospectus titled “Material Tax Consequences of the Combination — U.S. Federal Income Tax Consequences to Non-U.S. Holders of Bermuda NewCo Common Shares — Disposition of Shares” above. In general, with respect to any distributions that constitute dividends for U.S. federal income tax purposes and are not effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States, Bermuda NewCo will be required to withhold tax from the gross amount of the dividend at a rate of 30%, unless such Non-U.S. Holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides proper certification of its eligibility for such reduced rate (on an IRS Form W-8BEN or W-8BEN-E or other applicable documentation).

Because Bermuda NewCo generally cannot determine at the time Bermuda NewCo makes a distribution whether or not the distribution will exceed its current and accumulated earnings and profits, Bermuda NewCo normally will withhold tax on the entire amount of any distribution at the 30% rate (subject to reduction pursuant to an applicable income tax treaty). However, some or all of any amounts thus withheld may be refundable to the Non-U.S. Holder if it is subsequently determined that such distribution was, in fact, in excess of Bermuda NewCo’s current and accumulated earnings and profits. If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States (and, if required by an applicable income tax treaty