WiseTech founder and chief executive Richard White has sold more than $45.8 million worth of shares over the last week amid questions about the company's acquisition strategy and claims renegotiated earn-outs will add more than $100 million to its earnings for the financial year ending June 30.
Shares of the logistics solutions firm slumped by as much as 4.2 per cent - adding to Monday's 8.6 per cent decline - after it confirmed on Tuesday that Mr White had disposed of another $41 million worth of shares.James MarlowOn Monday, the company said Mr White had offloaded another parcel of 206,439 shares for $4.5 million, in his second share disposal since the its IPO in 2016.
In May, the company renegotiated earn-outs on another 17 acquisitions resulting in a one-off $69.5 million gain. Morningstar analyst Gareth James described the renegotiated acquisitions as a "curious situation" where the company is claiming a gain on cutting the fair value of any future payouts from the acquisitions but not the carrying value of the acquisitions themselves.
"The surprising aspect of this is we expect contingent consideration liabilities have fallen because expected future earnings have fallen," said Mr James.