WiseTech shares plunge 20 per cent after sex scandal fallout
The WiseTech boss is under extreme pressure amid a string of revelations about his personal life.
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WiseTech shares have plunged almost 20 per cent in early trading on Monday, as allegations against founder and chief executive Richard White mount up.
Mr White is now under pressure, with concerns mounting that the allegations in his private life – now extending to a second woman who has come forward – are proving to be a distraction for him and WiseTech.
There were further allegations contained in articles published by Nine Entertainment newspapers on Monday morning, which were addressed by WiseTech’s board in a statement to the ASX.
“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 company told the ASX.
“The board will continue to meet regularly to consider and monitor the situation, and keep the market updated in line with its continuous disclosure obligations.
“It is conscious of the potential impacts on the Company and will carefully evaluate all relevant factors in its assessment.”
WiseTech shares fell to $105.22 in early trading on the ASX, before regaining some ground to $107.36, down 12 per cent.
WiseTech shares last week fell more than 10 per cent since the move by Mr White, who started WiseTech 30 years ago and built it into a $41bn company, to bankrupt his former lover Linda Rogan emerged in the Federal Court at the start of October.
The recent slide comes as WiseTech chairman Richard Dammery prepares for a “meeting blitz” this week talking to large investors and proxy advisers.
One option presented to him by the board was for Mr White to take a leave of absence from the company to focus on his mental health. Although it hasn’t yet come to that point, Mr White has considered this proposal.
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