Optus reseller Yatango Mobile (Australia) Pty Ltd has gone into external administration, following an unsuccessful reverse listing attempt by its grand-parent company Yatango Pty Ltd.
CRN Australia reports that Yatango Pty Ltd (the grand-parent company of Yatango Mobile Australia) had planned to go public via a reverse-takeover with copper ore exploration company Latitude Consolidated Limited. While the mechanics of this are complex (you can get a rundown of how this generally works via Wikipedia), it’s sufficient to say here that it didn’t work, with Yatango Pty Ltd unable to secure sufficient fundraising to allow the takeover to go ahead.
Less than two months after the reverse-listing bid failed, Yatango Mobile is now under external administration as of 29 September 2015, with a creditors meeting to follow next week on 12th of October. For the time being, Yatango Mobile will continue to offer services, confirmed by the administrators Hugh Armenis and Katherine Barnet of Bentleys Corporate Recovery.
Exactly how the failed reverse listing attempt by Yatango Pty Ltd has factored into Yatango Mobile (Australia) going into administration is unclear at this point, but one can read between the lines — companies usually go into external administration because they’re no longer sustainable.
Yatango Mobile is a Mobile Network Virtual Operator (MNVO) which piggybacks off the Optus 4G network, offering their users in a social signup and support model which is directly linked to your Facebook. Yatango have a number of other businesses, only one of which has (to date) begun to trade in Australia; Yatango Shopping which took over Mobicity in the middle of 2014.
It’s a shame to see an up and coming telco facing the prospect of closing down, and undoubtedly there’ll be a large number of Yatango Mobile users wondering whether the company will restructure and continue, or whether it will close down. One thing is for sure, and that’s the MVNO market in Australia is ruthless — we’ve already seen other MVNOs shut down, including Kogan Mobile, Red Bull Mobile and Savvytell when their wholesaler went bust and severed the connection between the MVNOs and Telstra.
Ausdroid has approached Yatango Australia’s representatives for comment, but has not received any by the time of publication. If we receive any further comment, we’ll be sure to let you know.
Given the sharp pricing, where do you believe Yatango Mobile missed the mark?