WiseTech shares rally after Richard White steps aside
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More news: Shares in WiseTech rocketed in morning trade following the announcement that embattled Richard White has stepped down as executive chairman. His exit follows a string of systemic media reports surrounding alleged visa manipulation and a $200 million share sell-off during a blackout period.
Shares jumped 11% to $39.27 at 11:46am AEST.
RBC Capital Markets analyst Jackson Lee maintains an “outperform” rating on the stock with a $70 price target, noting the appointment of successor Raelene Murphy is the right step forward in addressing WiseTech’s governance concerns.
Richard White steps down as WiseTech executive chair following ‘personal attacks’ by the media
The news: Logistics software group WiseTech Global has announced Richard White will step down as executive chair, with board director Raelene Murphy appointed independent chair with immediate effect.
White, WiseTech’s co-founder and former CEO, will remain on the board as an executive director and continue in his role as chief innovation officer.
The context: Last year, the WiseTech board concluded a review into allegations about White reported in the media.
The review, which was supported by law firms Herbert Smith Freehills Kramer and Seyfarth Shaw, found no evidence White had inappropriately used company funds.
Last month, WiseTech played down media reports that indicated the Australian Federal Police is investigating White.
The company said the claims, which included allegations of exploitation of an individual’s immigration status and financial situation, relate only to White’s personal capacity and do not involve the company in any capacity.
White has denied the claims.
What they said: “Recent personal media attention is creating an unnecessary distraction from the strength of WiseTech’s business,” said White.
“At this time, the senior management team, [CEO] Zubin [Appoo] and I should be singularly focused on the execution of the company’s growth strategy.
“As I have stated previously, I strenuously and unequivocally deny the recent allegations in the media. Further, I am conscious that personal attacks on me in the media that are unconnected to the performance of the company nevertheless have the potential to encourage short selling activity.”
Murphy commented: “Since my appointment as lead independent director, I have proactively engaged with shareholders and shared their strong feedback with Richard and the board.
“My personal experience working with Richard is totally at odds with media reports. I have found him to be an incredibly hardworking, focused and committed founder who has built a leading global technology business with enormous potential to continue to growth stronger and thrive.”
The sources: ASX, RBC Market analyst note
