Company: UZF
Filing Date: 2025-01-23
Form Type: DEFM14C
Source: 0000821130-25-000012
Chunk: 22

Company: ARRAY DIGITAL INFRASTRUCTURE, INC.
Filing Date: 2025-01-23
Form: DEFM14C
Chunk 22
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 thereunder and published rulings and decisions, all as currently in effect as of the date of this Information Statement, and all of which are subject to change, possibly with retroactive effect. Tax consequences under state, local and non-U.S. laws, or federal laws other than those pertaining to income tax, are not addressed in this Information Statement. No rulings have been requested or received from the Internal Revenue Service as to the tax consequences of the Verizon Transaction and there is no intent to seek any such ruling. Accordingly, no assurance can be given that the Internal Revenue Service will not challenge the tax treatment of the Verizon Transaction discussed below or, if it does challenge the tax treatment, that it will not be successful.

The Verizon Transaction will take place between the Sellers and Purchaser (or their respective affiliates), meaning stockholders of the Company will not realize any direct gain or loss for U.S. federal income tax purposes as a result of the Verizon Transaction.

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The Verizon Transaction is expected to be treated for U.S. federal income tax purposes as a taxable sale of the Licenses owned by the Sellers upon which the Sellers will recognize gain or loss. Any such gain or loss is generally expected to be reflected on the consolidated tax return which TDS files as the common parent of our consolidated tax group. The amount of gain or loss that a Seller recognizes with respect to the sale of a particular License will be measured by the difference between the amount realized by each Seller on the sale of such License and the Seller’s tax basis in such License. For purposes of determining the amount realized by each Seller with respect to a specific License, the total amount realized by such Seller will generally be equal to the fair market value allocated to such License as set forth in the Agreement. Each Seller’s basis in a License is generally equal to its cost, as adjusted for certain items, such as amortization. The determination of whether a Seller will recognize gain or loss will be made with respect to each of the Licenses to be sold. Accordingly, we may recognize gain on the sale of certain Licenses and loss on the sale of certain other Licenses, depending on the amount of consideration allocated to a License as compared with the basis of that License. With certain exceptions, losses can generally be netted against gains. It is also possible that, upon the sale of a License, certain Sellers may be required to recapture amortization deductions that were previously taken with respect to such License. Any such recapture would generally be expected to result in ordinary