Super giant quits $580 million stake in WiseTech after Richard White’s triumphant return
AustralianSuper has sold its remaining $580 million stake in WiseTech, citing concerns around the return of controversial founder Richard White to the logistics software group’s helm after a boardroom bust-up.
The super fund, an investor in WiseTech since its 2016 share market float, confirmed on Wednesday the last of what had been a 2.6 per cent stake in the $28.6 billion company had been offloaded in recent weeks “because recent developments have not met our expectations”.
Mr White, WiseTech’s biggest shareholder with 36.7 per cent, regained management control of the group last month, despite a board-commissioned investigation finding he failed to fully disclose personal relationships with employees.
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By continuing you agree to our Terms and Privacy Policy.He had quit as chief executive and resigned as a director in October amid revelations about his conduct, including allegations that used his influence to gain sexual favours.
However, friction with the board about his continuing involvement with the company as a consultant triggered a power struggle that came to a head last month with the departure of chair Richard Dammery and three other independent directors over “intractable differences”.
Days later, Mr White retook control of WiseTech as executive chairman, saying he was “back for the long haul”.
AustralianSuper’s head of Australian equities, Shaun Manuell, said WiseTech’s governance had fallen short of the fund’s expectations.
‘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,” Mr Manuell said.
“‘We have been a shareholder and strong supporter of the business since its IPO in 2016, and it has created a significant amount of value for AustralianSuper members.”
However, “we believe good governance is essential to delivering the value we identify in a company”.
“As a long-term active manager, our role is to allocate members’ retirement savings to the companies we think are most likely to create value over the years to come,” Mr Manuell said.
“We have sold (WiseTech) because recent developments have not met our expectations.
“We may reconsider our position should circumstances change.”
WiseTech shares had earlier closed 22¢ higher at $85.40.
