Estranged partner Vikram Bakshi has offered to buy out the 50 per cent stake held by fast-food chain McDonald’s in their joint venture, Connaught Plaza Restaurants (CPRL).

Bakshi and McDonald’s India hold 50 per cent each in the joint venture.

It was incorporated in 1995 and has been operating fast-food outlets in North and East India.

On Thursday, Bakshi’s counsel told the Company Law Board that Connaught Plaza Restaurants was not keen on retaining the McDonald’s brand or its technological know-how. The market has been abuzz with news that McDonald’s may be looking to exit the venture and go solo.

‘Not keen on brand’

At the hearing, Bakshi’s counsel said: “While we recognise the goodwill of the brand, we are not keen to retain it.”

Bakshi’s legal team also sought to determine the net asset value of Connaught Plaza Restaurants and thereby, the value of the 50 per cent equity that McDonald’s holds. The Board was also informed that McDonald’s had already been paid a royalty while the joint venture existed.

At the hearing, the Company Law Board directed Bakshi to submit a valuation report and the structure used to achieve the valuation by March 11.

The case will be next heard on March 19 and 20.

Bakshi’s exit

In August 2013, McDonald’s India had announced that Bakshi had ceased to be the MD of Connaught Plaza Restaurants from July 17.

The following month, Bakshi moved the Company Law Board seeking his reinstatement as the managing director.

Bakshi said that the fast-food major had been trying to oust him from the venture in various ways since 2008.

He also alleged that this was part of the company’s strategy to force him to sell equity at a low valuation.

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