The London Court of International Arbitration has directed the appointment of experts to determine a fair and mutually agreeable valuation of the shares held by Vikram Bakshi in an equal joint venture with McDonald’s so that the US restaurant chain can buy out its estranged partner’s stake, two people aware of the developments said. The arbitration panel had ruled in favour of the fast-food company in a dispute over the termination of Bakshi as managing director of their joint venture.
It noted that all shares held by Bakshi are liable to be transferred and registered to McDonald’s India upon payment of the price determined in accordance with methodology set out by the JV agreement, one person said.
The panel has sought Bakshi’s cooperation in the matter, the person said. A spokesperson for McDonald’s declined to confirm the details of the panel’s ruling. McDonald’s moved for arbitration in November 2013, after Bakshi dragged the chain to the Company Law Board following his termination as MD of the joint venture, Connaught Plaza Restaurants Ltd. (CPRL). McDonald’s subsequently scrapped the agreement with CPRL effective September 6. CPRL operated 169 stores in north and east India, of which 43 had been shut on account of non-renewal of licences.
Source: Economic Times