Richard White, CEO of Wisetech Global Ltd. … More
Australiansuper is the country’s largest pension fund – Wisetech Global’s $580 million ($367 million) stock in recent weeks, due to concerns about corporate governance for Sydney-based freight companies.
The divest comes after Wisetech appointed its founder Richard White as executive chairman last month, allowing the tycoon to withdraw control of the company four months after a series of harmful media coverage, including his payment of millions of dollars to a former partner to settle allegations of inappropriate conduct.
White’s comeback was announced in February, with net revenue rising 38% with Wisetech’s first half-to-December results released, up 38% from the previous year. The company’s board said this month it will not take action against billionaire founders.
“We sold because recent developments have not met our expectations,” Shaun Manuell, head of Australian Stocks Australia’s stock, said in an emailed statement. “If things change, we may rethink our position.”
Australiansuper, which manages more than $365 billion, held a 2.3% stake in Wisetech in October, when allegations of White’s inappropriate behavior first surfaced. Its ownership fell to 1.9% last month.
“We need to see a smart transition plan that balances the role of governance and management founder in order to continue to maintain shareholders,” Manuell said.
Wisetech stock has fallen nearly 30% since White’s return. His real-time net worth fell from $10.1 billion to $7.2 billion Forbes Published the 50 most abundant list of Australia in February.
