AustralianSuper—the country’s largest pension fund—sold A$580 million ($367 million) shares of WiseTech Global in recent weeks amid concerns over corporate governance at the Sydney-based freight–software company.
The divestment comes after WiseTech appointed its founder Richard White as executive chairman last month, enabling the tycoon to take back control of the company four months after quitting as CEO following a series of damaging media reports, including one that he paid millions of dollars to a former partner to settle allegations of inappropriate behavior.
White’s comeback was announced in February in tandem with the release of WiseTech’s first-half to December results that showed a 38% jump in net income to $106 million from the previous year. The company’s board said this month it will not take action against the billionaire founder.
“We have sold because recent developments have not met our expectations,” Shaun Manuell, head of Australian equities at AustralianSuper, said in an emailed statement. “We may reconsider our position should circumstances change.”
AustralianSuper, which manages more than A$365 billion, held a 2.3% stake in WiseTech in October when allegations of White’s inappropriate behavior first came to light. Its ownership fell to 1.9% last month.
“We needed to see a sensible transition plan that got the balance right between governance and managing the founder’s role over time in order to continue to remain a shareholder,” Manuell said.
WiseTech shares have fallen almost 30% since White’s return. His real-time net worth declined to $7.2 billion from $10.1 billion when Forbes published the list of Australia’s 50 richest in February.
