Company: PENG
Filing Date: 2025-03-24
Form Type: PRE 14A
Source: 0001193125-25-060930
Chunk: 15

Company: Penguin Solutions, Inc.
Filing Date: 2025-03-24
Form: PRE 14A
Chunk 15
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angement Proposal”) which, if effective and upon the Completion Date, will result in the exchange of your Penguin Solutions Cayman ordinary shares and Penguin Solutions Cayman convertible preferred shares, as applicable, for an equal number of Penguin Solutions Delaware common stock and Penguin Solutions Delaware convertible preferred stock, respectively, and Penguin Solutions Delaware will become the ultimate parent company of the Penguin Solutions group of companies. The proposal contemplated by this proxy statement, the Scheme of Arrangement Proposal, is sometimes referred to herein as the “meeting proposal.” Please see “The Scheme of Arrangement Proposal.” 4

| 3. Q: | Why is Penguin Solutions proposing the Transaction? |

| A: | We have been incorporated in the Cayman Islands since 2011. While our incorporation in the Cayman                                                                                                         
 Islands has served us and our shareholders well, there are compelling reasons that support redomiciling the parent company of the Penguin Solutions group of companies to the United States at this time. |

We are a multi-national business with operations in many countries. However, our operations have become more focused in the United States, both through organic growth and as a result of 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 artificial intelligence (AI) infrastructure. Through our existing operating 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