Company: TGE
Filing Date: 2025-02-19
Form Type: DRS
Source: 0001213900-25-015012
Chunk: 183

Company: Generation Essentials Group
Filing Date: 2025-02-19
Form: DRS
Chunk 183
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 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 to U.S. Holders of BSII Securities,” Black Spade II and aWME intend to treat the merger as taxable exchange of the Black Spade II Securities for the aWME 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 aWME 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 in the Black Spade II Securities exchanged in the merger. The character of such gain 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. If the merger were to qualify as a reorganization, U.S. Holders that do not exercise their redemption rights generally would recognize gain (but not loss) for U.S. federal income tax purposes on the exchange of the Black Spade II Securities for the aWME Securities and the Non -RedemptionPayment Amount pursuant to the merger, in an amount equal to the lesser of (i) the U.S. Holder’s gain realized (i.e., the excess, if any, of (x) the sum of the fair market value of aWME Securities received by the U.S. Holder and the Non -RedemptionPayment Amount received by the U.S. Holder and (y) the U.S. Holder’s adjusted tax basis in the BSII Securities exchanged in the merger) and (ii) the Non -RedemptionPayment Amount. Furthermore, even if the merger does qualify as a reorganization, the proposed Treasury Regulations prom