Company: TGE
Filing Date: 2025-05-06
Form Type: F-4/A
Source: 0001213900-25-040058
Chunk: 187

Company: Generation Essentials Group
Filing Date: 2025-05-06
Form: F-4/A
Chunk 187
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 Shareholders approve the Business Combination. Black Spade II anticipates that it will be treated as a PFIC, which could result in adverse U.S. federal income tax consequences to U.S. investors who exercise their right to redeem the BSII Public Shares. Black Spade II anticipates that it will be treated as a PFIC with respect to its current taxable year. In that case, the U.S. federal income tax treatment of any income or gain recognized by a U.S. Holder that exercises its redemption rights will depend on the application of the PFIC rules discussed below and whether the U.S. Holder has made a QEF Election (as defined below) or mark -to -marketelection with respect to its BSII Class A Ordinary Shares. For a more complete discussion of the U.S. federal income tax considerations of an exercise of redemption rights by a U.S. Holder, see the sections titled “Tax Considerations — U.S. Federal Income Tax Considerations for U.S. Holders — Effects to U.S. Holders of Exercising Redemption Rights” and “Tax Considerations — U.S. Federal Income Tax Considerations for U.S. Holders — PFIC Considerations.” U.S. Holders of BSII Class A Ordinary Shares and warrants may be required to recognize gain for U.S. federal income tax purposes regardless of whether the merger qualifies as a reorganization for U.S. federal income tax purposes. As discussed in more detail below under “Tax Considerations — U.S. Federal Income Tax Considerations — Effects of the Business Combination,” Black Spade II and TGE intend to treat the merger as taxable exchange of the Black Spade II Securities for the TGE Securities and the Non -RedemptionPayment Amount, although the merger potentially could qualify as a “reorganization” within the meaning of Section 368(a) of the Code (a “reorganization”). As discussed in more detail below, there are significant factual and legal uncertainties as to whether the merger might qualify as a reorganization, and there can be no assurance that it will so qualify. 111 If the merger is a taxable exchange for U.S. federal income tax purposes, U.S. Holders that do not exercise their redemption rights will generally be required to recognize gain or loss equal to the difference between (i) the sum of the fair market value of TGE Securities received in the merger and the Non -RedemptionPayment Amount received by the U.S. Holder and (ii) the U.S. Holder’s adjusted tax basis