More than $1 billion has been added to Crown Resorts' market value as investors speculate a demerger of the casino operator will enable billionaire James Packer to privatise part of the group.

Crown has announced plans to spin off its investment in troubled joint-venture casinos in Macau in an effort to realise the value of its casinos in Melbourne and Perth, and its Barangaroo development in Sydney. Most of its international investments will be demerged – including a 27.4 per cent stake…