Company: TGE
Filing Date: 2025-04-25
Form Type: F-4/A
Source: 0001213900-25-035536
Chunk: 393

Company: Generation Essentials Group
Filing Date: 2025-04-25
Form: F-4/A
Chunk 393
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 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 TGE Warrants. Subject to the PFIC rules described below, if TGE redeems TGE Warrants for cash pursuant to the redemption provisions of the TGE Warrants or if TGE purchases TGE Warrants in an open market transaction, such redemption or purchase will generally be treated as a taxable disposition of such TGE Warrants by the U.S. Holder, taxed as described above under “— Taxation on the Disposition of TGE Securities.” 249 Possible Constructive Distributions The terms of each TGE Warrant provide for an adjustment to the number of TGE Class A Ordinary Shares for which the warrant may be exercised or to the exercise price of the warrant in certain events. An adjustment that has the effect of preventing dilution is generally not taxable to U.S. Holders of TGE Warrants. However, the U.S. Holders of TGE Warrants would be treated as receiving a constructive distribution from TGE if, for example, the adjustment increases the warrant holder’s proportionate interest in TGE’s assets or earnings and profits (e.g., through an increase in the number of TGE Class A Ordinary Shares that would be obtained upon exercise) as a result of a distribution of cash to the holders of TGE Class A Ordinary Shares that is taxable to the U.S. Holders of such TGE Class A Ordinary Shares as a distribution as described above under “— Taxation of Dividends and Other Distributions on TGE Class A Ordinary Shares.” Such a constructive distribution to the U.S. Holders of the warrants would be subject to tax as described under that section in the same manner as if the U.S. Holders of the warrants received a cash distribution from TGE equal to the fair market value of the increase in the interest. A U.S. Holder’s adjusted tax basis in an TGE Warrant would generally be increased to the extent any such constructive distribution is treated as a dividend. 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 (