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Laura Ashley boss' marriage to former beauty queen Pauline Chai ends amid £440m divorce battle

Judge grants decree nisi at Central Family Court in London following application by former beauty queen Pauline Chai

Paul Gallagher
Thursday 07 January 2016 19:43 GMT
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Pauline Chai claims her husband is wealthier than he says
Pauline Chai claims her husband is wealthier than he says (Rex)

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The 43-year marriage of Laura Ashley boss Khoo Kay Peng and his estranged wife officially ended in court today in the latest round of a £440m divorce battle.

Judge Stephen Alderson granted a decree nisi at the Central Family Court in London, following an application by former beauty queen Pauline Chai. Neither party attended the hearing although Ms Chai was represented by lawyers.

The couple, who have five children, have been embroiled in litigation for more than two years following the breakdown of their 43-year marriage.

Dr Khoo, the 77-year-old non-executive chairman of Laura Ashley Holdings, failed last month in bid to halt legal proceedings in England, after he claimed a UK court would give Ms Chai a more generous award than one in Malaysia. Dr Khoo wanted the hearing held in his home country having said the marital home was there and a Malaysian judge should decide about division of assets.

Ms Chai, 69, said the pair moved to live in Berkhamsted, Hertfordshire, before separating and therefore an English court should adjudicate. She has accused Dr Khoo, who owns a 44 per cent stake in Laura Ashley Holdings, of making a “desperate attempt” to avoid fighting over money in an English court.

High Court judge Mr Justice Bodey ruled last October that proceedings launched in England by Ms Chai could continue. Three Court of Appeal judges upheld that decision last month. Ms Chai estimates Dr Khoo to be worth £440m and said his income is £5.4m a year, but claimed he has failed to give a “proper account” of his assets. Dr Khoo disputes her claims.

Judges heard that legal bills of around £5m have been accumulated. Ms Chai has spent £3.5m on fees.

In an earlier hearing, the High Court heard Dr Khoo was paying maintenance to Ms Chai pending a final decision on how much she would get. He is also paying her lawyers’ bills, of £60,000 a month, on the understanding that money would be repaid when litigation ended.

Ms Chai said: “I am so relieved my prayers have been answered. I have great respect for the English judicial system and am incredibly grateful to have been protected by it.”

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