Company: BACC
Filing Date: 2025-06-11
Form Type: S-1/A
Source: 0001185185-25-000607
Chunk: 311

Company: Blue Acquisition Corp/Cayman
Filing Date: 2025-06-11
Form: S-1/A
Chunk 311
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istributions.” Whether a redemption qualifies for sale treatment will depend largely on the total number of our shares treated as held by the U.S. Holder (including any shares constructively owned by the U.S. Holder per the constructive ownership rules described in the following paragraph, including as a result of owning Share Rights) relative to all of our shares outstanding both before and after such redemption. A redemption of Class A ordinary shares generally will be treated as a sale of the Class A ordinary shares (rather than as a corporate distribution) if such redemption (i) is “substantially disproportionate” with respect to the U.S. Holder, (ii) results in a “complete termination” of the U.S. Holder’s interest in us or (iii) is “not essentially equivalent to a dividend” with respect to the U.S. Holder. These tests are explained more fully below.

In determining whether any of the foregoing
tests are satisfied, a U.S. Holder takes into account not only our shares actually owned by the U.S. Holder, but also our shares
that are constructively owned by such U.S. Holder. A U.S. Holder may constructively own, in addition to shares owned directly,
shares owned by certain related individuals and entities in which the U.S. Holder has an interest or that have an interest in such
U.S. Holder, as well as any shares the U.S. Holder has a right to acquire by exercise of an option, which generally would include
Class A ordinary shares which could be acquired by such U.S. Holder pursuant to the Share Right. In order to meet the substantially disproportionate
test, the percentage of our issued and outstanding voting shares actually and constructively owned by the U.S. Holder immediately
following the redemption of Class A ordinary shares must, among other requirements, be less than 80% of the percentage of our issued
and outstanding voting shares actually and constructively owned by the U.S. Holder immediately before the redemption. Prior to our
initial business combination, it is possible that the Class A ordinary shares may not be treated as voting shares for this purpose
and, consequently, this substantially disproportionate test may not be applicable. There will be a complete termination of a U.S. Holder’s
interest if either (i) all of our shares actually and constructively owned by the U.S. Holder are redeemed or (ii) all
of our shares actually owned by the U.S. Holder are redeemed and the U.S. Holder is eligible to waive, and effectively waives
in