By Colin Kruger
Embattled WiseTech founder Richard White will own even more of the company after agreeing to buy 10.2 million shares in the business from the group’s co-founder as the tech firm deals with the aftermath of White’s resignation following allegations of inappropriate behaviour.
Late on Friday, WiseTech said Maree Isaac, who remains an executive director of the group, had sold most of her shares in WiseTech to White for an upfront payment of $285 million and quarterly instalment payments over the next seven years based on the company’s share price at the time.
The 10.2 million shares being sold to White are worth more than $1 billion based on Friday’s share price.
Maree Isaacs remains an executive director at WiseTech despite the share sale.
Isaacs indicated the deal allowed her to access the wealth she had built up since co-founding the company 30 years ago. She said she remained committed to the company.
Isaacs said: “I am extremely grateful to Richard for his work and leadership in creating WiseTech. After 30 years of helping to build WiseTech, I was keen to start to unlock and realise some of the value in the WiseTech shares I hold through RealWise Holdings Pty Limited.
“We are both excited about WiseTech’s future growth opportunities and continue to be as driven as ever on achieving WiseTech’s global growth ambitions.”
In the transaction, Isaacs will sell her 8 per cent interest in RealWise, which controls the original shares owned by both the co-founders, to White, giving him full control of the 38 per cent WiseTech stake that RealWise controls.
Isaac, who rarely speaks to the media, will remain owner of her share rights in the group relating to her executive role with WiseTech.
White and WiseTech were plunged into turmoil following an investigation by The Sydney Morning Herald, The Age and The Australian Financial Review which revealed White had paid for a multimillion-dollar house for an employee and that he had been accused by an outgoing WiseTech Global director of intimidation and bullying.
White stood down as chief executive in October but will take up a “full-time, long-term consulting role” with the group, which is searching for a new CEO.
At last month’s annual meeting, White apologised for the impact of the media storm as an ongoing board review cleared him of alleged misconduct, including an accusation of bullying.
Chairman Richard Dammery at the AGM said the group would downgrade its financial guidance as a result of recent events.
“Upfront, I need to say that the board is disappointed that the diversion of Richard White’s attention away from product development at a critical juncture has impacted the timing of the release of some of the three breakthrough products,” Dammery said.
“This will result in changes to both revenue and earnings guidance.”
WiseTech shares plummeted on the day of the downgrade, but they have made a partial recovery and closed at $128.10 on Friday.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.