London, June 19, 2026, 15:08 (BST)
- 3i dropped 1.8% to 2,205 pence in afternoon trading, trailing the FTSE 100.
- About half of the two-day drop comes from Thursday’s 48-pence ex-dividend adjustment.
- Action’s still-soft sales and weak margins are the big question for the valuation. 3i updates again July 23.
3i Group slipped 1.8% to 2,205 pence as of 14:56 BST Friday, lagging the FTSE 100, which was down 0.3% by about 3 p.m. The shares hovered near their session low of 2,200 pence.
3i shares closed at 2,303 pence Wednesday and dropped to 2,245 pence Thursday, after going ex-dividend for a 48-pence second payout. Ex-dividend status means buyers after that date aren’t due the payout, so the price usually drops by around the dividend amount. After adjusting for the payout, the real economic loss through Friday was about 2.2%, not the 4.3% headline fall.
3i didn’t issue a new operating update on Friday. The most recent filing was a June 15 share buyback notice, so investors kept weighing the ongoing debate around Action, the European discount chain that drives most of 3i’s earnings.
Debate picked up after Action posted year-to-date like-for-like sales growth of 2.4% through May 10, down from 6.8% the previous year, with France and Germany both flat. Like-for-like sales measure stores open in both periods. CEO Simon Borrows said, “The market environment remains complex with heightened geopolitical risk.” 3i
3i’s heavy concentration amplifies moves in the portfolio. The firm put a £23.74 billion value on its 65.4% stake in Action, which is nearly three quarters of its £31.82 billion total portfolio. Action’s operating EBITDA margin dropped to 12.4% in the first quarter, down from 14.8%. EBITDA is earnings before interest, tax, depreciation and amortisation. On Friday, 3i shares traded around 27% below the company’s stated 3,030-pence net asset value per share.
3i’s £750 million buyback is already in motion. As of June 15, 3i put £174.2 million into buying back and cancelling 7.88 million shares. Buying at a discount to NAV can raise the value per share, though the Action exposure stays in place.
UBS kept its Buy rating and 2,700-pence target on 3i in a note on Wednesday, calling 2026/27 a trough year for both 3i and Action. The firm said it doesn’t see the first-quarter release as a likely catalyst. UBS pointed to better trends for Action in May, but said clear evidence will probably take more time.
The risk isn’t one-directional. If France and Germany keep recovering and margins come in higher, the NAV discount could shrink. On the other hand, fresh sales or margin trouble at Action would likely keep the discount in place, despite share buybacks from 3i. The group is set to give its next Q1 update on July 23.
