Richard White Sells $442 Million in WiseTech Shares Amid Personal and Corporate Turmoil

Highlights:

1. Significant Share Sale: Former WiseTech CEO Richard White has sold $442 million worth of shares between October 2 and December 20, reducing his stake from 37.7% to 36.3% of the company, still valued at $15 billion.
2. Board-Level Share Sales: Other WiseTech board members have also offloaded shares, including Director Charles Gibbon, who sold over 1.5 million shares worth nearly A$200 million for personal estate planning reasons, and co-founder Maree Isaacs, who sold 10.2 million shares amid the fallout from allegations involving White.
3. Corporate Fallout and Recovery: Despite a 20% drop in WiseTech’s stock price in October, the company’s shares have rebounded, climbing 64% over the past year, as White’s personal challenges and resignation from key positions continue to unfold.

Richard White, the former CEO and chairman of WiseTech Ltd, has made headlines with a significant sale of his company’s shares, totaling $442 million. The transaction, which took place through on-market sales between October 2 and December 20, has seen White reduce his stake in the logistics technology firm from 37.7% to 36.3%. Despite this reduction, White still maintains a substantial ownership in the company, valued at approximately $15 billion.

The timing of the sale comes amidst a tumultuous period for White, who has been embroiled in a series of personal controversies. In October, allegations surfaced involving White's affairs with multiple women and the purchase of homes for some of them. These allegations led to his resignation from the board of the Tech Council of Australia and his stepping away from the management of WiseTech, a company he founded and led to international success.

In an emotional statement following the allegations, White acknowledged the challenging personal times he was experiencing and reassured stakeholders that he remained committed to the continued success of WiseTech. Despite the scandal, White expressed his desire to see the company grow and thrive, emphasizing his deep connection to the organization he built from the ground up.

While WiseTech shares experienced a 20% drop in October in response to the news surrounding White, the company’s stock has shown remarkable recovery, rising 64% over the past year. This rebound highlights the resilience of WiseTech and the confidence investors continue to have in the company’s long-term prospects, even as its founder navigates personal turmoil.

The share sale by White is part of a broader trend of board-level transactions within WiseTech. In December, director Charles Gibbon sold over 1.5 million shares, netting nearly A$200 million. Gibbon, a shareholder since 2005, sold 8.8% of his stake, citing the need to address personal estate planning matters. This marks Gibbon’s first sale of shares in WiseTech since 2019.

The Australian Shareholders Association, led by CEO Rachel Waterhouse, has expressed interest in gaining more information regarding these transactions. The association aims to ensure that shareholders are fully informed about the reasons behind such significant share movements.

Meanwhile, in November, WiseTech co-founder Maree Isaacs also sold her shares to White, offloading 10.2 million shares as part of the fallout from the allegations involving White. Isaacs, who held her shares through RealWise Holdings, which owns 37.4% of WiseTech, stated that the sale would allow her to access liquidity while remaining committed to the company’s future.

Isaacs reflected on her long tenure with WiseTech, noting her gratitude for White’s leadership in building the company and her intention to continue supporting its future success. However, the sale also signals a shift in the ownership structure of WiseTech as some of its key figures look to unlock the value of their investments.

Despite these significant share sales, the broader outlook for WiseTech remains positive, with the company continuing to experience growth in its stock value. The ongoing developments, including leadership changes and board-level shifts, will likely shape the future direction of WiseTech as it adapts to both internal and external challenges.