WTC Billions wiped off WiseTech’s books as crisis engulfs CEO

Shares in Australia’s biggest listed technology company, WiseTech Global, plunged by nearly 20 per cent on Monday morning, wiping billions from its valuation, after reporting by The Age, The Sydney Morning Herald and the Australian Financial Review into serious allegations of inappropriate behaviour by its billionaire CEO Richard White.

A joint investigation by the three mastheads published on Monday morning revealed a woman, who had a sexual relationship with Australia’s 11th richest person, made several claims about him in late 2020, including allegations he had engaged in inappropriate behaviour.

This masthead is not suggesting the allegations against White are true, only that they were made.

Questions from the mastheads triggered a series of crisis meetings over the weekend, and on Monday the company’s share price fell dramatically. WiseTech shares dropped in early trading by nearly 20 per cent, plummeting to as low as $105.22, before recovering slightly to $108.81 at 1pm AEDT, down 11.2 per cent.

The company had nearly $5 billion wiped from its valuation in a matter of hours and is on track for its worst trading session in more than a year. WiseTech’s major shareholders include AustralianSuper, the Future Fund, REST and Sun Super, as well as White himself, who continues to sell down his stake.

White, who has amassed a personal fortune of more than $10 billion thanks to WiseTech’s growth, sold 351,038 shares in the company between October 11 and October 17, according to a notice filed with the ASX. It is not suggested White or others were aware of the media investigation at the time of these sales.

The WiseTech board said in a statement on Monday morning that it noted the reporting from the three mastheads about its chief executive.

“The board is currently reviewing the full range of matters raised in today’s media reports and is actively seeking further information and taking external advice,” the statement said.