LONDON, June 11, 2026, 15:03 BST
- 3i Group picked up 2.47% to 2,241p on the FTSE 100, according to delayed AJ Bell data.
- The rally draws focus to the gap between 3i’s share price and its net asset value.
- Action is still the big risk for 3i. The discount retailer makes up most of the portfolio and its like-for-like sales growth has slowed lately.
3i Group plc gained Thursday, bouncing as some investors stepped in after the heavy selling linked to Action last month. Shares got a lift from bargain hunting, 3i’s ongoing buyback, and the discount to the portfolio. AJ Bell’s lagging FTSE 100 tally put 3i up 54p, or 2.47%, at 2,241p. The FTSE 100 index added 0.98%.
3i shares moved harder than the wider market. Hargreaves Lansdown quoted 3i at 2,241p to sell and 2,242p to buy, higher from a last close of 2,187p. Market value was shown around £21.5 billion with a latest NAV of 3,030p per share. NAV, or net asset value, is what an investment firm’s assets are worth after taking out liabilities, divided per share.
The gap is what puts the stock in focus today. 3i shares at about 2,241p trade far under the 3,030p NAV from the end of March, so investors are still putting a sharp discount on the Action stake. Hargreaves Lansdown showed a premium/discount figure of minus 28.03%, which shows just how much the market price trails the asset value.
3i shares climbed Thursday, but there wasn’t a new trading update to drive the move. The most recent filings in the regulatory feed are a director/PDMR shareholding notice and a transaction-in-own-shares, both published June 8. No new Action numbers have been posted since then. With nothing fresh on operations, Thursday’s move looks like a valuation reset.
3i’s buyback plan is key to its overhaul. On May 14, 3i said it would buy back up to £750 million of its own shares, aiming to finish by December 31, 2026. Those repurchased shares will be cancelled, cutting the share count. Buying shares below NAV can boost value for holders, as assets are split between fewer shares.
3i’s latest filing showed it bought 2,158,344 ordinary shares for cancellation through Barclays Capital Securities from June 1 to June 5. 3i has now picked up 5,782,242 shares in total since the buyback started, paying £127.5 million before fees and taxes. That’s about 17% of the maximum £750 million programme.
3i’s latest numbers in May looked solid, with total return at £5.304 billion, or 22% on opening shareholders’ funds, and NAV moving up to 3,030p from 2,542p a year ago. But investors remain wary. The company called Action the key force behind group performance, yet slower growth at Action took some shine off those headline results.
Action is not a sideshow. 3i put its 65.4% holding in the retailer at £23.743 billion as of March 31, with a total portfolio closing value of £31.821 billion. So one unlisted business makes up close to three-quarters of the total. Even small shifts in Action’s sales or valuation can swing the numbers for the whole group.
Like-for-like sales growth is the problem for Action. The measure, which leaves out new store openings, was 2.4% year-to-date at May 10, 3i said. That’s a slide from 6.8% for the same stretch last year. Cooler weather weighed on seasonal goods. In France, shoppers stayed cautious. Germany had slower foot traffic after Middle East tension spiked in late March.
Action kept growing. Net sales hit €4.010 billion in the first three periods of 2026, up from €3.521 billion a year ago. Operating EBITDA rose to €498 million from €464 million. The operating EBITDA margin slipped to 12.4% from 13.2%. Store growth slowed, with 33 net new stores added compared to 49 in the same stretch last year.
The risk is the share price rebound might not hold up if Action’s weaker run continues longer than 3i’s management thinks. The firm is still valuing Action at 18.5 times last-12-month run-rate EBITDA, including a liquidity discount. But any hit to consumer demand, softer seasonal sales, lower margins, or a derating across discount chains could put that multiple under pressure. The market might keep 3i trading at a deep discount even as buybacks go on.
Investors are now looking at whether Action’s summer trading can back up the current valuation, as 3i carries on buying back shares below NAV. The buyback programme will need shareholder approval to continue after the 2026 AGM, so the next moves from Action’s trading and any word on the share repurchases are set to be the next key signals after Thursday’s jump.
