WiseTech, the Australian logistics software company that earlier this year closed on the acquisition of U.S.-based e2Open, found itself embroiled this week in a possible insider trading probe of executive chairman and founder Richard Wise.
According to multiple press reports, the Australian Securities & Investments Commission and the Australian Federal Police raided the company’s office in Sydney, searching for various documents related to trading in WiseTech stock White may have engaged in late 2024 and into 2025.
WiseTech stock has been on a steady decline for almost a year. It traded just under Au$140 (U.S. $91.52) a year ago. It is now less than $70, with a decline of more than $15 in just the past few days as news of the investigation unfolded.
White last year resigned as CEO after issues regarding “inappropriate behavior,” according to media reports. But he then made a return as executive chairman in February. Former WiseTech executive Zubin Appoo was brought in as CEO in July. The e2open acquisition closed in August.
E2open was acquired for $2.1 billion, which equated to $3.30 per share. That was about a 28% premium over the stock price prior to the announced acquisition.
WiseTech’s core product is execution software CargoWise. But it owns a lineup of other logistics software providers. Its web page lists 20 other companies, and e2open has not yet been added to the list.
According to media reports, Morningstar has issued its outlook on WiseTech which sees a significant impact to the company if White is forced out yet again.
Morningstar analyst Roy Van Keulen said in a research note, according to report, that his company would reduce its estimated value of WiseTech by 15% to 20% should White depart. “Both the rate of growth and the ultimate progression of the business would shrink,” he said, according to the media reports, which added that Morningstar considered the chance of White’s ouster as a result of the stock trading probe to be small.
More articles by John Kingston
DAT execs in two forums discuss how it seeks to reshape the freight sector
State of Freight takeaways: some signs are pointing higher
NMFTA’s freight classification overhaul: surprising shipper preparedness
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now