WiseTech slides after AustralianSuper sells remaining shares
Make us a preferred source
Make us a preferred source on Google
More news: Shares in WiseTech Global dropped at market open after the country's largest pension fund AustralianSuper sold its 1.9% stake in the logistics software giant, following accusations of inappropriate conduct by founder and former CEO Richard White.
WiseTech shares were down 3.4% to $82.49 at 10:35am AEDT. The market's largest tech stock helped drag the wider sector down 2.3% as the ASX 200 index fell 0.5%.
AustralianSuper exits WiseTech after scandals
The news: AustralianSuper has sold its stake in WiseTech Global, after the logistics software giant's recent handling of founder Richard White's transition did not meet its expectations, the country's largest pension fund said on Wednesday.
The numbers: The superannuation fund, which manages around $365 billion, said that it no longer holds an active shareholding in WiseTech, having sold around $580 million worth of stock to close its 1.9% position over the past few weeks.
The context: WiseTech’s founder and largest shareholder Richard White, who is also the company’s largest shareholder, stepped down as CEO in October last year after media reports on White’s personal life emerged, including allegations that he made payments to a previous sexual partner.
White returned to the company as executive chair last month, despite an internal review finding that he had misled the board on details of his personal relationship with employees. His return to the boardroom came just days after four WiseTech directors quit the company citing "intractable differences" over White's role.
“We have sold because recent developments have not met our expectations,” AustralianSuper’s head of Australian equities Shaun Manuell explained in a statement released on Wednesday. “We needed to see a sensible transition plan that got the balance right between governance and managing the founder’s role over time in order to continue to remain a shareholder”
AustralianSuper’s stake reached a peak of 2.64% in January 2024, but shrunk to 2.26% by October, when allegations against White’s behaviour were reported.
The sources: Reuters, Bloomberg, Capital Brief
