Company: BACC
Filing Date: 2025-06-11
Form Type: S-1/A
Source: 0001185185-25-000607
Chunk: 315

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-06-11
Form: S-1/A
Chunk 315
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 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 regard to the U.S. Holder’s                
 other items of income and loss for that year; and                                                                                    |

| ● | an                                                                                                                                  
 additional amount equal to the interest charge generally applicable to underpayments of tax will be imposed on the U.S. Holder with 
 respect to the tax attributable to each such other taxable year of the U.S. Holder.                                                 |

In general, if we are determined to be a PFIC, a U.S. Holder may be able to avoid the PFIC tax consequences described above in respect to our Class A ordinary shares (but, under current law, not the Share Rights as discussed below) by making a timely and valid QEF election (if eligible to do so) to include in income its pro rata share of our net capital gains (as long-term capital gain) and other earnings and profits (as ordinary income), on a current basis, in each case whether or not distributed, in the taxable year of the U.S. Holder in which or with which our taxable year ends. A U.S. Holder generally may make a separate election to defer the payment of taxes on undistributed income inclusions under the QEF rules, but if deferred, any such taxes will be subject to an interest charge.

If a U.S. Holder makes a QEF