Wisetech Global Ltd (ASX: WTC) shares are frozen at $121.70 apiece after the tech company requested a pause in trading just before the market open on Thursday.
About 30 minutes later, Wisetech lodged a formal trading halt request pending an announcement relating to governance.
Wisetech asked the ASX to keep the trading halt in place until the earlier of an announcement or the commencement of trading on Monday.
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Wisetech shares on hold ahead of governance news
Management requested the trading halt "to enable the Company to be in a position to provide an update on current Board discussions relating to matters of governance".
The halt comes 10 days after the company responded to more media commentary regarding its founder, Richard White.
On 10 February, Wisetech told investors it had received two confidential complaints from an employee and a supplier. Those complaints included allegations in relation to White.
The company said the complaints were "being considered in the ongoing Board Review".
Governance review
The Wisetech board began a governance review in October last year.
On 24 October, the company announced White would step down from his role as CEO and executive director.
This occurred three days after media reports relating to White's personal life.
The company said White would take on a newly created consultancy role as founder and founding CEO with the same pay.
In a statement, the company told shareholders that White had requested the change of role himself.
Wisetech also said the board was looking into the specific issues raised in those media reports and had appointed Herbert Smith Freehills and Seyfarth Shaw LLP to assist.
The board said it would update the market on the outcome of the review in due course.
Chair Richard Dammery said:
As WiseTech continues to grow, and becomes increasingly international, the Board recognises that its governance practices will also continue to evolve.
We are taking a fresh look at what we are doing well and what we can enhance.
White's new deal still not inked
In the 10 February statement, Wisetech said the fuller details of White's new employment arrangement were yet to be agreed.
Meantime, the company and White "have been operating broadly in accordance with what was announced" on 24 October.
Should you buy Wisetech shares?
Morgan Stanley is positive on the outlook for Wisetech shares. It has an overweight rating on Wisetech with a 12-month share price target of $160.
Goldman Sachs has a buy rating on Wisetech shares with a price target of $142.
Bell Potter also says Wisetech shares are a buy. The broker's price target is $140.
Wisetech is scheduled to release its 1H FY25 results next Wednesday, 26 February.
