Company: TGE
Filing Date: 2025-04-11
Form Type: F-4
Source: 0001213900-25-031177
Chunk: 391

Company: Generation Essentials Group
Filing Date: 2025-04-11
Form: F-4
Chunk 391
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 SUCH ELECTION, AND THE IMPACT OF ANY PROPOSED OR FINAL PFIC TREASURY REGULATIONS. Effects to U.S. Holders of Exercising Redemption Rights Subject to the PFIC rules discussed above, the U.S. federal income tax consequences to a U.S. Holder of BSII Class A Ordinary Shares that exercises its redemption rights to receive cash in exchange for all or a portion of its BSII Class A Ordinary Shares will depend on whether the redemption qualifies as a sale of such shares redeemed under Section 302 of the Code or is treated as a distribution under Section 301 of the Code, as well as on whether such holder has made a timely QEF Election or mark -to -marketelection (each as discussed above). 253 The redemption of BSII Class A Ordinary Shares will generally qualify as a sale of the BSII Class A Ordinary Shares that are redeemed if such redemption (i) is “substantially disproportionate” with respect to the redeeming U.S. Holder, (ii) results in a “complete termination” of such U.S. Holder’s interest or (iii) is “not essentially equivalent to a dividend” with respect to such U.S. Holder. Under these tests, which are explained more fully below, it is expected that a redeeming U.S. Holder will generally be treated as selling its BSII Class A Ordinary Shares with the U.S. federal income tax consequences generally described above with respect to TGE Class A Ordinary Shares under “— Taxation on the Disposition of TGE Securities.” For purposes of such tests, a U.S. Holder takes into account not only BSII Class A Ordinary Shares actually owned by such U.S. Holder, but also BSII Class A Ordinary Shares that are constructively owned by such U.S. Holder. A redeeming U.S. Holder may constructively own, in addition to BSII Class A Ordinary Shares owned directly, BSII Class A Ordinary Shares owned by certain related individuals and entities in which such U.S. Holder has an interest or that have an interest in such U.S. Holder, as well as any BSII Class A Ordinary Shares such U.S. Holder has a right to acquire by exercise of an option, which would generally include shares which could be acquired pursuant to the exercise of the BSII Warrants. The redemption of BSII Class A Ordinary Shares will generally be “substantially disproportionate” with respect to a redeeming U.S. Holder if the percentage of the respective entity’s outstanding voting shares that such