Company: TGE
Filing Date: 2025-07-03
Form Type: F-1/A
Source: 0001213900-25-061211
Chunk: 186

Company: Generation Essentials Group
Filing Date: 2025-07-03
Form: F-1/A
Chunk 186
---
.

Distributions in excess of
such earnings and profits will generally be applied against and reduce the U.S. Holder’s basis in its Class A Ordinary
Shares (but not below zero) and, to the extent in excess of such basis, will be treated as gain from the sale or exchange of such Class A
Ordinary Shares. Because we does not expect to determine its earnings and profits on the basis of U.S. federal income tax principles,
it is expected that any distribution paid by us will generally be reported as a dividend.

With respect to non-corporate
U.S. Holders, dividends will generally be taxed at preferential long-term capital gains rates only if Class A Ordinary Shares
are readily tradable on an established securities market in the United States, provided that we are not a PFIC (or treated as a PFIC
with respect to a particular U.S. Holder) in the taxable year in which the dividend was paid or the preceding taxable year and certain
holding period and other requirements are met. U.S. Holders should consult their tax advisors regarding the availability of the lower
rate for any dividends paid with respect to Class A Ordinary Shares.

Possible Constructive
Distributions

The terms of each Warrant
provide for an adjustment to the number of Class A Ordinary Shares for which the warrant may be exercised or to the exercise price
of the warrant in certain events. An adjustment that has the effect of preventing dilution is generally not taxable to U.S. Holders
of Warrants. However, the U.S. Holders of Warrants would be treated as receiving a constructive distribution from us if, for example,
the adjustment increases the warrant holder’s proportionate interest in our assets or earnings and profits (e.g., through an increase
in the number of Class A Ordinary Shares that would be obtained upon exercise) as a result of a distribution of cash to the holders
of Class A Ordinary Shares that is taxable to the U.S. Holders of such Class A Ordinary Shares as a distribution as described
above under “—Taxation of Dividends and Other Distributions on Class A Ordinary Shares.” Such a constructive
distribution to the U.S. Holders of the warrants would be subject to tax as described under that section in the same manner as if
the U.S. Holders of the warrants received a cash distribution from us equal to the fair market value of the increase in the interest.
A U.S. Holder’s adjusted tax basis in a Warrant would generally be increased to