James Packer must have a smile on his face. Crown Resorts’ share price has jumped 13% following the announcement of ‘major initiatives to enhance shareholder value’, boosting his fortune by $568m – the equivalent of 56 Mariah Carey engagement rings.
The price jump isn’t too surprising as the proposals are clearly designed to boost the share price, but the question is whether they also create long-term value. On balance, we think they do.
Spin off of international businesses