Company: TGE
Filing Date: 2025-04-11
Form Type: F-4
Source: 0001213900-25-031177
Chunk: 384

Company: Generation Essentials Group
Filing Date: 2025-04-11
Form: F-4
Chunk 384
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 Passive income generally includes dividends (excluding any dividends received from a Look -ThroughSubsidiary), interest, rents and royalties (other than certain rents or royalties derived from the active conduct of a trade or business) and net gains from the disposition of passive assets. PFIC Status 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 taxable year that includes the Business Combination 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 TGE Class A Ordinary Shares may cause TGE to become a PFIC (including for the taxable year that includes the Business Combination) 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 TGE 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 -passiveincome, 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 BSII or TGE (as the case may be) is a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder’s BSII Class A Ordinary Shares or TGE Class A Ordinary Shares (as the case may be, “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 made (i) a timely and effective QEF election for such entity’s first taxable year as a PFIC in which the U.S. Holder held such Shares (such taxable year as it relates to each U.S. Holder, the “First PFIC Holding Year”), or (ii) a “mark -to -market” election, each