Company: PENG
Filing Date: 2025-03-24
Form Type: PRE 14A
Source: 0001193125-25-060930
Chunk: 47

Company: Penguin Solutions, Inc.
Filing Date: 2025-03-24
Form: PRE 14A
Chunk 47
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 our business and our operations have become more focused in the United States, both through organic growth and as a result of multiple acquisitions of U.S.-based companies, and we expect to continue to invest in our operations in the United States, particularly in the areas of high-performance computing (HPC) and AI infrastructure. Through our existing subsidiaries and our listing on Nasdaq, we already have a substantial presence in the United States. It is important to note that our corporate headquarters, our executive management team, a majority of our operating assets, including significant intellectual property, and a substantial portion of our employee base are also in the United States. As a result, we believe that having our parent company based in the United States would streamline our corporate structure, resulting in administrative efficiencies and reduced regulatory compliance costs, and align the legal framework governing the Penguin Solutions group of companies with our operational footprint, which we believe will enhance clarity for our customers and business partners. In addition, the incremental tax cost of being a U.S.-based multinational corporation has decreased materially as a result of U.S. corporate tax reform, which will also allow us to tax-efficientlydeploy our capital in the United States. Following a thorough review, we have determined that having our ultimate parent company incorporated in the United States will increase our opportunities for growth and is best for us, our shareholders and our employees. After considering various factors, our board of directors determined that it was advisable to proceed with the Transaction. Our board of directors’ determination that Delaware is the preferred jurisdiction of incorporation of the parent of the Penguin Solutions group of companies was based on many factors, including the following:

| • |     | Delaware offers predictable and well-established corporate laws; |

| • |     | Delaware has a well-developed legal system which we believe encourages high standards of corporate governance and 
 provides stockholders with substantial rights;                                                                    |

| • |     | corporations domiciled in Delaware are perceived more favorably among regulatory authorities, investors and 
 creditors than corporations domiciled in many other jurisdictions; and                                      |

| • |     | Delaware corporate law provides significant flexibility around corporate transactions, including the issuance of 
 equity and the payment of dividends, while at the same time protecting the rights of stockholders.               |

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We cannot assure you that the anticipated benefits of the Transaction will be realized. In
addition, despite the potential benefits described above, the Transaction will expose you and us to potential risks, including relating to future income tax policy in the United States. Please see the discussion under “Risk Factors.”