The shell company said "any transaction will require the execution of definitive binding legal agreements on mutually acceptable terms, due diligence, regulatory and third party approval, among other conditions precedent."

The announcement to the local stock exchange came after Bloomberg reported earlier Tuesday that Pegasus Asia was nearing an agreement on a merger with satellite internet company Kacific Broadband Satellites.

Pegasus Asia referred Reuters to the stock exchange announcement when asked to comment on Tuesday. Kacific Broadband did not immediately respond to request seeking comment.

"The company wishes to emphasise that there is no certainty or assurance that a transaction will proceed or take place and there is no certainty or assurance that definitive binding legal agreements to effect a business combination will be signed," Pegasus Asia said in the statement.

(Reporting by Yantoultra Ngui, Editing by Louise Heavens)