Company: TGE
Filing Date: 2025-07-10
Form Type: 424B3
Source: 0001213900-25-062835
Chunk: 192

Company: Generation Essentials Group
Filing Date: 2025-07-10
Form: 424B3
Chunk 192
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 of TGE

Based on the current and anticipated
value of the assets and the composition of the income and assets, including goodwill and other unbooked intangibles, of TGE and its subsidiaries,
TGE does not currently expect to be a PFIC for the current taxable year ending December 31, 2025 or foreseeable future taxable years.
However, this conclusion is a factual determination that must be made annually at the close of each taxable year on the basis of the composition
of the income and assets, which may fluctuate, of TGE and its subsidiaries, and, thus, is subject to change. Accordingly, there can be
no assurance that TGE or any of its subsidiaries will not be a PFIC for any taxable year. Furthermore, fluctuations in the market price
of the Class A Ordinary Shares may cause TGE to become a PFIC because the value of its assets, including goodwill and other unbooked
intangibles, for purposes of the asset test may be determined by reference to the market price of the Class A Ordinary Shares, which
may be volatile. Additionally, under circumstances where TGE’s income from activities that produce passive income significantly
increases relative to income from activities that produce non-passive income, or where TGE determines not to deploy significant amounts
of cash for active purposes, TGE’s risk of becoming a PFIC may substantially increase.

Application of PFIC
Rules

If TGE is a PFIC for any taxable
year (or portion thereof) that is included in the holding period of a U.S. Holder’s Class A Ordinary Shares, respectively,
then such holder will generally be subject to special rules (the “Default PFIC Regime”) with respect to such Shares unless
the U.S. Holder makes a “mark-to-market” election as described below.

It is not entirely clear how
various aspects of the PFIC rules apply to the Warrants. Section 1298(a)(4) of the Code provides that, to the extent provided
in Treasury regulations, any person who has an option to acquire stock in a PFIC shall be considered to own such stock in the PFIC for
purposes of the PFIC rules. No final Treasury regulations are currently in effect under Section 1298(a)(4) of the Code. However,
proposed Treasury regulations under Section 1298(a)(4) of the Code have been promulgated with a retroactive effective date (the
“Proposed PFIC Option Regulations”). U