London, June 24, 2026, 14:04 BST
- 3i gained 0.15% to 2,279.5p after the open in London trade
- AGM ballot would raise the Action investment cap to 30%, up from 15%
- Buyback spending is now at £216.8 million
3i Group shares inched higher on Wednesday. The move comes a day ahead of a vote by shareholders on letting the British investment firm add more money to Action, the European discount retailer that makes up most of its portfolio.
3i shares edged up 0.15% to 2,279.5 pence at 1347 BST in London. The stock traded about 25% under its last stated net asset value of 3,030p per share. Net asset value is assets minus liabilities.
Shareholders are set to vote Thursday on whether to lift 3i’s cap on investments in Action to 30% from 15% of its portfolio value. The limit tracks aggregate investment cost against 3i’s most recent portfolio figure. The same proposal would lower the 3i Infrastructure cap to 15% from 30%. Another resolution on the agenda asks for approval to buy back up to 102 million shares.
3i reported an aggregate investment cost in Action of £4.44 billion, or 14.7% of its portfolio value as of Dec. 31. That puts the holding near the existing cap. The stake’s carrying value made up about 75% of the portfolio at March 31. Chair David Hutchison said the adjustment would give 3i more “flexibility and headroom” for additional buying of Action interests if it spots chances. 3I
3i’s shares trade below NAV, making buybacks look sensible if the firm’s private asset marks stand up. The Action shareholder vote could push more capital into the portfolio’s top holding, deepening its concentration.
3i said Monday it had repurchased 9,754,509 shares for cancellation, spending £216.8 million. That’s about 29% of its £750 million buyback plan. The average buy price comes to nearly £22.23 a share, which is under Wednesday’s quoted price.
3i Group’s buyback started May 14 and runs through Dec. 31. CEO Simon Borrows said the move “reinforces our consistent focus on optimising value creation.” Any additional purchases after the AGM will need shareholder approval to renew the company’s authority. Investegate
3i said total return hit £5.30 billion for the year to March 31, making up 22% of opening shareholders’ funds. Most of that came from Action, which drove £4.51 billion in gross investment return, or 25% of its opening value.
But adding to its Action position ups the concentration risk. Action’s like-for-like sales growth so far this year is 2.4% as of May 10, down from 6.8% in the same stretch a year ago. The retailer’s Q1 operating EBITDA margin came in at 12.4%. That compares with 14.8% for 2025. If foot traffic or margins stay weak, 3i’s NAV could take a hit, and owning more of Action would amplify that risk.
