Company: BACC
Filing Date: 2025-05-14
Form Type: S-1
Source: 0001185185-25-000465
Chunk: 296

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-05-14
Form: S-1
Chunk 296
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able Exchange or Other Taxable Disposition of Class A Ordinary Shares and Share Rights

Subject to the PFIC rules discussed below, a U.S. Holder
generally will recognize capital gain or loss on the sale or other taxable disposition of our Class A ordinary shares (including
a redemption of our Class A ordinary shares (as described below) or Share Rights that is treated as a taxable disposition, including
pursuant to our dissolution and liquidation if we do not consummate an initial business combination within the required time period).
Any such capital gain or loss generally will be long-term capital gain or loss if the U.S. Holder’s holding period for such
Class A ordinary shares or Share Rights exceeds one year. Long-term capital gain realized by a non-corporate U.S. Holder may
be taxed at reduced rates of taxation. It is unclear, however, whether certain redemption rights described in this prospectus may suspend
the running of the applicable holding period of the Class A ordinary shares for this purpose. If the running of the holding period
for the Class A ordinary shares is suspended, then non-corporate U.S. Holders may not be able to satisfy the one-year holding
period requirement for long-term capital gain treatment, in which case any gain on a sale or other taxable disposition of the Class A
ordinary shares would be subject to short-term capital gain treatment and would be taxed at regular ordinary income tax rates. The deductibility
of capital losses is subject to certain limitations.

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The amount of gain or loss recognized by a U.S. Holder on a sale or other taxable disposition generally will be equal to the difference between (i) the sum of the amount of cash and the fair market value of any property received in such disposition (or, if the Class A ordinary shares or Share Rights are held as part of units at the time of the disposition, the portion of the amount realized on such disposition that is allocated to the Class A ordinary shares or Share Rights based upon the then relative fair market values of the Class A ordinary shares and the Share Rights comprising the units determined by the allocation principles described above under “ — Allocation of Purchase Price and Characterization of a Unit”) and (ii) the U.S. Holder’s adjusted tax basis in its Class A ordinary shares or Share Rights so disposed of. A U.S. Holder’s adjusted tax basis in its Class A ordinary shares or Share Rights generally will equal the U.S. Holder’s acquisition cost (that is, the portion