Data management group Recall has delayed its shareholder vote on the proposed $3.4 billion takeover bid from Iron Mountain by a month to give the US logistics giant more time to secure regulatory approval.
Recall - which cut its annual earnings guidance on Monday after first-half net profit nearly halved - has pushed back the meeting to April 19 from March 17 as Iron Mountain seeks regulatory approval in Australia, the US, the UK and Canada.
"The time frame to execute the deal has been longer than originally anticipated, largely as a result of the extended regulatory review process," Recall chief executive Doug Pertz said at the company's first half results briefing on Monday.
"The resulting uncertainty has caused some revenue headwinds, particularly in regard to our M&A (merger and acquisition) activity."
Substantial progress has been made with regulators, and the company is confident that the authorities' concerns will be addressed, paving the way for the tie-up on May 2, he added.
Recall directors continue to unanimously recommend shareholders vote in favour of the Iron Mountain offer, which was unveiled on April 29, 2015, in the absence of a better takeover offer.
Under the deal, Recall shareholders will receive 0.1722 Iron Mountain shares for each Recall stock they own or a cash payment of $8.50 a share.
Recall - which was spun off from logistics group Brambles in December 2013 - forecast annual revenue growth in the high single digits, down from its previous guidance of growth in the near double digits, as the company puts the brakes on its buying-spree because of the Iron Mountain bid.
Underling earnings growth will be in line with revenue growth, on a constant currency basis, it said.
Net profit nearly halved to $US16.7 million ($A23.41 million) in the six months to December 31, hurt by management's decision to slow down its acquisitions strategy.
That compares to a net profit of $US32.5 million over the same period a year ago.
The strengthening US dollar had also impacted the group's statutory first-half results, Mr Pertz said.
On a constant currency basis, Recall reported growth in all regions and service lines, Mr Pertz added.
Again on a constant currency basis, underlying earnings rose 6.6 per cent in the first-half of fiscal 2016 from a year ago, while sales revenue was up 6.7 per cent.
Recall shares closed five cents higher at $6.88.
RECALL INTERIM NET PROFIT DROPS
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