Mariah Carey has been seen hanging out with Australian billionaire James Packer.

E! News reported that Carey was in the Italian island, Capri, together with her 3-year-old twins, Monroe and Moroccan. Aside from hanging out with her kids, the news outlet's sources claimed that Carey was seen dining with Packer at the famed Aurora restaurant Mia D'Alessio, where the singer dines regularly every time she visits Capri.

"They seemed very happy, relaxed, at ease in each other's company," an insider told E! News. "She looked beautiful in her red dress."

Earlier in the day, Carey, 45, and Packer, 47, was spotted walking hand-in-hand while shopping for special items from the island's local businesses, the news outlet added. A source claimed that the duo "were both wearing beaming smiles on their faces" while enjoying the sun, E! News further claimed.

While on vacation, the "Infinity" singer shared snapshots of herself with the kids on Instagram. Despite of ex-husband Nick Cannon's absence in the trip, Carey and her twins took some time to remember the rapper.

"Happy Father's Day @NickCannon!!" she wrote on Instagram accompanying a photo featuring Moroccan and Monroe holding up hand-made signs with the words "Love, Roc & Roe" written on it.

A report from Sydney Morning Herald took note of the snapshot posted on Instagram by Jodhi Meares, Packer's first ex-wife. The photo features Meares posing for the camera together with Carey and Packer.

The news outlet pointed out that the picture could be a form of "old fashioned subterfuge -- creating a distraction to the media so they don't pay any unwelcome attention on other aspects of his private life." Packer has been constantly supporting Meares in the latter's latest struggles in life.

Sydney Morning Herald took note of the instances when Meares was under the spotlight for negative headlines, including driving under the influence in Bellevue Hill and her unpleasant engagement with rocker and former flame Jon Stevens.

It should also be noted that Carey and Packer are common friends with Brett Ratner, who was previously romantically linked to the songstress a few months ago. Packer and Ratner are business partners in the Hollywood production company, RatPac Entertainment, Sydney Morning Herald added.

In addition, Carey is working with Ratner for a Christmas-themed film alongside New Line Cinema and producer Jon Shestack, Deadline reported. Given that RatPac is also involved in the project, it's expected that Packer will finance the project.

Prior to Meares, the businessman was married to Erica Baxter until they separated in 2013. The former couple has three children together, PEOPLE wrote.