WiseTech billionaires down $2bn in share value thanks to Richard White’s court stoush
Tech powerhouse WiseTech Global has been an ASX star but its shares have fallen since legal controversies arose about its founder and now Richard White is under pressure from his board.
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Richard White and his fellow WiseTech Global billionaires have lost more than $2bn from their share wealth in the two weeks since his legal stoush with an ex-lover and subsequent controversies became public.
WiseTech shares have plunged 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.
Sources have told The Weekend Australian that there is currently little prospect of a settlement in the case between Mr White and Ms Rogan, who is fighting the bankruptcy action lodged against her by the WiseTech founder.
The controversies swirling around Mr White all trace back to his decision to try to bankrupt Ms Rogan over a $91,000 sum she spent on luxury furniture at a Sydney mansion Mr White allegedly bought for her in 2022 before their affair was discovered by his now wife Zena Nasser.
Ms Rogan last year took action to garnish the amount from Mr White’s Westpac bank account, and the billionaire – whose estimated fortune is now more than $15bn – launched the bankruptcy action in August this year.
In the absence of any court action, it is unlikely the salacious details about Mr White’s private life would have seen the light of day.
While WiseTech shares are still up about 98 per cent in the past 12 months and 62 per cent since January 1, the recent slide comes as WiseTech chairman Richard Dammery prepares for a “meeting blitz” next week talking to large investors and proxy advisers.
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.
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.
The WiseTech board, via a spokeswoman, told The Australian this week: “Although the issues are of a highly personal nature, the board is conscious of the potential impact on WiseTech, and has been meeting regularly to consider the situation.”
It has been a horror two weeks for Mr White and WiseTech’s board, who have read in-depth allegations about their founder’s affairs outside of work, including details in court documents of an exchanging of business advice for sex with Ms Rogan, and an alleged promise to invest in her wellness business that was rescinded, and also locking her out of the $13.1m house he bought for Ms Rogan in Sydney’s Vaucluse.
The Australian then this week revealed further claims from Sydney woman Jenna Riches, who divulged how mentoring that started on LinkedIn evolved into a romantic relationship. Ms Riches alleges the relationship ended after it was discovered by Mr White’s now wife, Zena Nasser. Mr White declined via a spokeswoman to respond to questions put to him this week regarding Ms Riches’ claims.
WiseTech’s share price closed at $122.48 on Friday, down 3.56 per cent for the day and about 8.8 per cent since opening on Monday. They have fallen about 11 per cent since the start of October.
Mr White has lost about $1.7bn from his paper wealth, though he has sold about $90m of his WiseTech shares in two transactions this month. Maree Isaacs, who helped Mr White start WiseTech and is now an executive director, has lost about $150m from the value of her shareholding. She has sold about $8m in shares this month. Non-executive director Charles Gibbon, who has been on the WiseTech board for more than 18 years, has seen $255m fall from his stake this month, while former long-time director Michael Gregg has lost about $150m on paper.
Mr White has been defiant. “I remain fully committed and laser-focused on delivering WiseTech’s strategy,” he said on Thursday.
A spokeswoman for Mr White previously said about the court action involving Ms Rogan: “Given this matter is currently before the court, Richard is unable to comment other than to say that the court proceedings relate to an unresolved commercial debt arising from various cases run by Ms Rogan against Richard, and costs and court orders made against Ms Rogan in those matters.”
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Originally published as WiseTech billionaires down $2bn in share value thanks to Richard White’s court stoush
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