KUALA LUMPUR (June 2): Shares of RHB Bank Bhd and AMMB Holdings Bhd (AmBank) advanced this morning after the banks yesterday confirmed that they are exploring a merger and that they have obtained approval from Bank Negara Malaysia (BNM) to commence discussions.

At 9.07am, RHB Bank rose 2.41% or 13 sen to RM5.52 with 635,400 shares traded while AmBank was up 2.69% or 14 sen to RM5.35 with 911,100 shares traded.

With BNM’s approval, the two lenders said they have inked an exclusivity agreement to negotiate and finalise terms and conditions of the proposed merger by Aug 30.

Both banks “envisaged that the transaction will effectively be an all-share merger.”