Company: TGE
Filing Date: 2025-12-03
Form Type: 424B3
Source: 0001213900-25-117807
Chunk: 192

Company: Generation Essentials Group
Filing Date: 2025-12-03
Form: 424B3
Chunk 192
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 such corporation), are held for the production of, or produce, passive income (for these purposes
including cash and cash equivalents). Passive income generally includes dividends (excluding any dividends received from a Look-Through
Subsidiary), interest, rents and royalties (other than certain rents or royalties derived from the active conduct of a trade or business)
and net gains from the disposition of passive assets.

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PFIC Status of
TGE

Based on the current and
anticipated value of the assets and the composition of the income and assets, including goodwill and other unbooked intangibles, of TGE
and its subsidiaries, TGE does not currently expect to be a PFIC for the current taxable year ending December 31, 2025 or foreseeable
future taxable years. However, this conclusion is a factual determination that must be made annually at the close of each taxable
year on the basis of the composition of the income and assets, which may fluctuate, of TGE and its subsidiaries, and, thus, is subject
to change. Accordingly, there can be no assurance that TGE or any of its subsidiaries will not be a PFIC for any taxable year. Furthermore,
fluctuations in the market price of the Class A Ordinary Shares may cause TGE to become a PFIC because the value of its assets,
including goodwill and other unbooked intangibles, for purposes of the asset test may be determined by reference to the market price
of the Class A Ordinary Shares, which may be volatile. Additionally, under circumstances where TGE’s income from activities
that produce passive income significantly increases relative to income from activities that produce non-passive income, or where TGE
determines not to deploy significant amounts of cash for active purposes, TGE’s risk of becoming a PFIC may substantially increase.

Application of
PFIC Rules

If TGE is a PFIC for any
taxable year (or portion thereof) that is included in the holding period of a U.S. Holder’s Class A Ordinary Shares,
respectively, then such holder will generally be subject to special rules (the “Default PFIC Regime”) with respect to such
Shares unless the U.S. Holder makes a “mark-to-market” election as described below.

It is not entirely clear
how various aspects of the PFIC rules apply to the Warrants. Section 1298(a)(4) of the Code provides that, to the extent provided
in Treasury regulations