Company: PENG
Filing Date: 2025-05-02
Form Type: DEF 14A
Source: 0001193125-25-110748
Chunk: 66

Company: Penguin Solutions, Inc.
Filing Date: 2025-05-02
Form: DEF 14A
Chunk 66
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 of Penguin Solutions
Delaware common stock received pursuant to the Scheme of Arrangement should include the U.S. Holder’s holding period for the Penguin Solutions Cayman ordinary shares surrendered in exchange therefor.

U.S. Holders should consult their tax advisors about any reporting requirements and information statements that could be applicable to a U.S.
Holder with respect to the Scheme of Arrangement and any potential consequences, including penalties, associated with a failure to satisfy such requirements.

Passive Foreign Investment Company Status

Penguin Solutions Cayman believes that it was not a “passive foreign investment company” (generally, a foreign corporation that has a
specified percentage of “passive” income or assets in a taxable year, after the application of certain “look-through” rules) for U.S. federal income tax purposes for its 2024 taxable year or any prior taxable year and does not
expect to be a passive foreign investment company for its 2025 taxable year. If Penguin Solutions Cayman was a passive foreign investment company for any taxable year during which a U.S. Holder held Penguin Solutions Cayman ordinary shares, certain
adverse tax consequences, including recognition of gain and application of an interest charge, could apply to such U.S. Holder as a result of the Scheme of Arrangement, unless an exception under the relevant U.S. Treasury Regulations can be relied
upon. U.S. Holders should consult their tax advisors with respect to the U.S. federal income tax consequences of the Scheme of Arrangement regarding the status of Penguin Solutions Cayman as a passive foreign investment company for any taxable year
during which they held Penguin Solutions Cayman ordinary shares and the implications of such status on the U.S. federal income tax consequences of the Scheme of Arrangement to them.

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Material U.S. Federal Income Tax Considerations to U.S. Holders Regarding Owning and Disposing of Shares of Penguin Solutions Delaware Common Stock Received in the Scheme of Arrangement

Distributions on Shares of Penguin Solutions Delaware Common Stock

Any distribution made by Penguin Solutions Delaware to a U.S. Holder with respect to shares of Penguin Solutions Delaware
common stock will generally be includible in the U.S. Holder’s gross income, in the year actually or constructively received, as a dividend to the extent that such distribution is paid out of Penguin Solutions Delaware’s current or
accumulated earnings and profits (as determined under U.S. federal income tax principles). To the extent that the amount of the distribution exceeds Penguin Solutions Delaware’s current and accumulated earnings and profits