Company: TGE
Filing Date: 2025-07-10
Form Type: 424B3
Source: 0001213900-25-062835
Chunk: 191

Company: Generation Essentials Group
Filing Date: 2025-07-10
Form: 424B3
Chunk 191
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. Holder’s
purchase price for units that is allocated to such Warrants)) and the exercise price of such Warrants. It is unclear whether a U.S. Holder’s
holding period for the Class A Ordinary Shares would commence on the date of exercise of the Warrants or the day following the
date of exercise of the Warrants. We expect a cashless exercise of Warrants to be treated as a recapitalization for U.S. federal
income tax purposes. However, there can be no assurance which, if any, of the alternative tax characterizations and holding periods described
above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders should consult their tax advisors regarding the tax
consequences of a cashless exercise of Warrants.

Subject to the PFIC rules
described below, if we redeem Warrants for cash pursuant to the redemption provisions of the Warrants or purchase Warrants in an open
market transaction, such redemption or purchase will generally be treated as a taxable disposition of such Warrants by the U.S. Holder,
taxed as described above under “—Taxation on the Disposition of the Securities.”

PFIC Considerations

Definition of a
PFIC

A foreign (i.e., non-U.S.)
corporation will be a PFIC for U.S. federal income tax purposes if at least 75% of its gross income in a taxable year of the foreign
corporation, including its pro rata share of the gross income of any corporation in which it is considered to own at least 25% of the
shares by value (a “Look-Through Subsidiary”), is passive income. Alternatively, a foreign corporation will be a PFIC if at
least 50% of its assets in a taxable year of the foreign corporation, ordinarily determined based on fair market value and averaged quarterly
over the year, including such foreign corporation’s pro rata share of the assets of any Look-Through Subsidiary (and excluding the
value of the shares held in 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