James Packer's Crown Resorts will split its international business into a new listed vehicle and explore a potential IPO of a property trust that would include all of the company's Australian hotels, except Crown Towers in Melbourne.
Mr Packer will no longer be employed as an executive of Crown Resorts under the proposal, but will continue as the deputy chair of Macau-focused Melco Crown.
But his private business, Consolidated Press Holdings, could earn up to $8 million annually under a services agreement.
"I am fully supportive of the board's decisions today," Mr Packer said.
"Crown is one of Australia's most successful tourism and leisure companies and I am extremely proud of what we have achieved with our resorts in Australia, but also across Asia. This new corporate structure, well positions Crown for the next decade as we continue to grow our business and meet the needs of the emerging Asian middle class."
Crown owns a 27.4 per cent stake New York-listed casino group Melco Crown Entertainment, after trimming its stake in May, raising $US800 million. Melco operates three casinos in Macau, one in the Philippines.
Crown's stake in Melco Crown will go into the new international holding company, along with its investment in Las Vegas casino and hotel Alon which is under development its 20 per cent holding in the Nobu restaurant chain, it's 50 per stake in British regional casino operator Aspers and its stake in Caesars Growth Partners
Crown Resorts will retain the company's existing casinos and hotels in Melbourne and Perth and the hotel and casino under development at Sydney's Barangaroo precinct. It will also retain Betfair Australasia, a 62 per cent stake in online bookmaker Crownbet and 50 per cent in Ellerston resort in the Hunter Valley.
Crown will then examine the float of a property trust which would own the Australian hotels, excluding Crown Towers in Melbourne.
Crown would own 51 per cent of the trust.
Crown Resorts chair Rob Rankin would chair both companies. He said the move was designed to unlock value in the group.
"The board has for some time been looking to address what we believe to be a material undervaluation by the market of Crown Resorts' assets, due to a traditional consolidated (or amalgamated) structure," Mr Rankin said.
"In particular, we believe that Crown Resorts' extremely high quality Australian resorts are not being fully valued and the Crown Resorts share price has been highly correlated to the performance of its investment in Macau."
Mr Packer, who owns 53 per cent of Crown, revealed in December 2015 that his private investment vehicle, Consolidated Press Holdings, was examining a privitisation of the casino operator.
Mr Packer held talks with sovereign wealth funds and other cashed-up investors to look at how he could fund such a move.
In the six months to December 31, 2015, Crown made a normalised net profit of $210.3 million in total, of which $37.2 million was its share of Melco Crown earnings.
Crown shares have fallen 11.7 per cent in the last 12 months to close at $11.26 on Wednesday.