MTS to change functions of ecosystem holding's management company Erion

MOSCOW. Feb 6 (Interfax) - MTS has announced changes to the functions of the management company Erion LLC, which consolidates five non-telecom assets of MTS Group.

"PJSC MTS continues the transformation of the management structure of its subsidiary Erion LLC, which consolidates non-telecom assets. The functions of the Erion LLC management company will be changed, the boards of directors of the assets and their management will be strengthened, and they will receive greater independence and authority. The transformation will simplify and improve the corporate governance of the subsidiary companies," MTS's press service said.

Previously, Kommersant citing sources reported that MTS may liquidate the Erion ecosystem. The IT division MTS Web Services will be merged into MTS, part of the assets will be transferred to the management of PJSC AFK Sistema and part will be closed, Kommersant said. The head of Erion, Rovshan Aliyev, will also leave his post.

MTS's press service said on Thursday that all companies of the MTS ecosystem "are now allocated as separate, independent businesses with formed governing bodies," and "the process of making all strategic decisions at the level of the MTS group of companies remains the same - through the governing bodies of PJSC MTS."

MTS's non-telecom assets continue to operate as before and develop according to the strategy. At the same time, there are no plans to reduce staff in the operating companies, MTS said.

MTS Group announced a large-scale restructuring of corporate management at the end of 2024, within which it defined five key non-telecom directions: IT (MTS Web Services), finance (MTS Fintech), media (On Media), kick-sharing (Urent) and advertising (MTS Adtech). They came under the management of Erion, which is owned by PJSC MTS - the group's holding structure accumulating telecom and retail businesses. PJSC MTS is 42.09% owned by AFK Sistema.

AFK Sistema declined to comment.