Company: BACC
Filing Date: 2025-06-02
Form Type: S-1/A
Source: 0001185185-25-000574
Chunk: 318

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-06-02
Form: S-1/A
Chunk 318
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 a PFIC, whether or not we meet the test for PFIC status in those subsequent years. If we are determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of our Class A ordinary shares or Share Rights and, in the case of our Class A ordinary shares, the U.S. Holder did not make either a timely mark-to-market election or a qualified electing fund (“QEF”) election (as discussed below) for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) Class A ordinary shares, as described below, such U.S. Holder generally will be subject to special rules with respect to (i) any gain recognized by the U.S. Holder on the sale or other disposition of its Class A ordinary shares or Share Rights (which may include gain realized by reason of transfers of Class A ordinary shares or Share Rights that would otherwise qualify as non-recognition transactions for U.S. federal income tax purposes) and (ii) any “excess distribution” made to the U.S. Holder (generally, any distributions to such U.S. Holder during a taxable year of the U.S. Holder that are greater than 125% of the average annual distributions received by such U.S. Holder in respect of the Class A ordinary shares during the three preceding taxable years of such U.S. Holder or, if shorter, the portion of such U.S. Holder’s holding period for the Class A ordinary shares that preceded the taxable year of the distribution) (together the “excess distribution rules”).

Under these excess distribution rules:

| ● | the                                                                                                               
 U.S. Holder’s gain or excess distribution will be allocated ratably over the U.S. Holder’s holding period for the 
 Class A ordinary shares or Share Rights;                                                                          |

| ● | the                                                                                                                    
 amount allocated to the U.S. Holder’s taxable year in which the U.S. Holder recognized the gain or received the excess 
 distribution, or to the portion of the U.S. Holder’s holding period before the first day of our first taxable year in  
 which we are a PFIC, will be taxed as ordinary income;                                                                 |

| ● | the                                                                                                                                  
 amount allocated to each other taxable year (or portion thereof) of the U.S. Holder and included in its holding period will be taxed 
 at the highest tax rate in effect for that year and applicable to the U.S. Holder without