Uzbek State-Owned Jewelry Manufacturer Gold Moon Tashkent Offered for 316.7 Billion Soms

The Uzbek government has announced an open auction for the sale of its entire 100% stake in Gold Moon Tashkent, the company owning the state-run jewelry manufacturer Fonon. The starting bid is set at 316.7 billion soms, with the auction scheduled to begin on September 28.

Strategic Sale Amid Financial Restructuring

Gold Moon Tashkent reported a net profit of 33.4 billion soms in the first half of 2026, marking a turnaround from losses in previous years. Despite this improvement, the company’s financial health remains challenged, with liabilities exceeding assets by 107.3 billion soms as of July 1, 2026.

The buyer will assume ownership along with creditor obligations totaling approximately 305.9 billion soms and debtor claims of 13.2 billion soms. Moreover, some company properties—including buildings and structures on a 2.56-hectare site in Chilonzor district, Tashkent—are encumbered by restrictions imposed by a commercial bank, details of which remain undisclosed.

“The strategic divestment allows the government to transfer operational and financial responsibilities while enabling potential investors to implement corporate restructuring,” industry analysts noted.

Participants must submit bids by 9:00 AM on the auction date, with a security deposit of 9.5 billion soms required. The auction price will increase in increments of no less than 5% of the starting price or 15.8 billion soms.

Asset and Workforce Overview

The company’s primary assets include real estate and fixed assets with a book value of 110.7 billion soms, subject to a depreciation rate of 33.2%. Average annual employee counts vary between 309 and 459 depending on the source, reflecting some inconsistency in reported workforce data.

Gold Moon Tashkent traces its origins to 2021, evolving from a predecessor scientific-production enterprise also named Fonon. The initial project investment was valued at approximately $21 million, with an annual production capacity of six tons of jewelry.

It is important to note that while the "Fonon" brand is associated with both the manufacturer and a jewelry retail chain, the auction covers exclusively the 100% state-owned stake in Gold Moon Tashkent. The brand’s retail operations, including the "Empire Jewelry" LLC and the Fonon trademark, are not included in the sale.

Financial Performance Trajectory

According to audited financials, the company’s total revenue was 413.8 billion soms in 2025, slightly down by about 1% from the previous year. Net losses decreased from 12.3 billion soms in 2024 to 7.8 billion soms in 2025, signaling a gradual improvement. The first half of 2026 saw a positive net profit, indicating operational progress.

Nonetheless, the balance sheet still reflects negative net assets, underscoring the need for strategic capital infusion or debt restructuring by prospective owners.

Terms and Conditions for Buyers

The auction terms allow payment installments over a period of up to 36 months. Should the initial payment be less than 35% of the purchase price, interest will accrue on the outstanding amount at the Central Bank’s base rate.

No explicit requirements are set for new investments or employment guarantees in the auction documentation, leaving room for buyer discretion in future business planning.

This sale represents a significant opportunity for investors interested in Uzbekistan’s manufacturing sector, particularly in the luxury goods market. However, the successful acquisition will require careful evaluation of the company’s debt burden, asset encumbrances, and operational challenges.