On Thursday, Asiasons Capital Ltd said that the Singapore Exchange believed that it did not have strong mandate for a share issue. The said share issue would be used to finance the purchase of a stake in a US oil and gas company.

The move of the Singapore Exchange had thrown into question whether the investment company's stake acquisition plan could push through. Asiasons Capital had been planning to acquire a 27.5% stake in Black Elk Energy Offshore Operations LLC. The deal was valued USD171.65 said a report from Reuters.

Last month, Asiasons said that it had planned to fund the purchase by issuing 194.6 million new shares. The shares were valued at SGD1.1948 per share piece.

On Wednesday, the SGX told Asiasons that it had not satisfied a rule that would give it authority to issue new shares. This was according to the company's stock market filing on Thursday.