Company: TGE
Filing Date: 2025-02-19
Form Type: DRS
Source: 0001213900-25-015012
Chunk: 376

Company: Generation Essentials Group
Filing Date: 2025-02-19
Form: DRS
Chunk 376
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 will depend on whether the Business Combination is a taxable exchange of BSII Securities for aWME Securities and the Non -RedemptionPayment Amount or, alternatively, qualifies as a tax -freereorganization within the meaning of Section 368(a) of the Code (a “reorganization”). To qualify as a reorganization, a transaction must generally satisfy certain requirements, including, among others, that the acquiring corporation continue, either directly or indirectly through certain controlled corporations, a significant line of the acquired corporation’s historic business or use a significant portion of the acquired corporation’s historic business assets, in each case, within the meaning of Treasury Regulations Section 1.368 -1(d). Some or all of these requirements may not be satisfied if a substantial portion of the BSII Securities are redeemed in connection with the merger. Due to the absence of guidance regarding the application of this requirement to the particular facts of the Business Combination (namely, the case of an acquisition of a corporation with only investment -typeassets such as BSII), the U.S. federal income tax treatment of the Business Combination is subject to significant uncertainty. BSII and aWME intend to treat the Business Combination as a taxable exchange of BSII Securities for aWME Securities for U.S. federal income tax purposes. The closing of the Business Combination is not conditioned upon the receipt of an opinion of counsel of such treatment, and neither BSII nor aWME intends to request a ruling from IRS regarding the U.S. federal income tax treatment of the Business Combination. Accordingly, there can be no assurance that the IRS will not challenge such treatment nor that a court will not sustain such position. Consequences if the Business Combination is Treated as a Taxable Transaction.If, as is intended by BSII and aWME, the Business Combination is a taxable exchange for U.S. federal income tax purposes, a U.S. Holder that exchanges BSII Securities for aWME Securities will generally recognize gain or loss in an amount equal to the difference, if any, between (i) the sum of the fair market value of aWME Securities received by such holder and the Non -RedemptionPayment Amount received by such holder and (ii) such holder’s adjusted tax basis in the BSII Securities surrendered. Subject to the discussion below under the section “— PFIC Considerations of the Business Combination,” any gain or loss so recognized will generally be capital gain or loss and will be long -termcapital 247 gain or loss if such U.S. Holder’s holding period in the