London, June 23, 2026, 16:13 (BST)
3i Group traded flat at 2,261p late Tuesday in London, holding its 2.6% bounce from Monday. Investors weighed more share buying and signs of progress on regulations at some holdings.
The stock is trading about 25% under 3i’s March 31 NAV of 3,030 pence per share. NAV is assets minus liabilities for an investment company. 3i posted a £5.30 billion total return for the year, or 22% of opening shareholders’ funds. “In FY2026, we generated a total return on shareholders’ funds of £5,304 million, or 22%,” CEO Simon Borrows said. 3i
The shares stayed resilient as London traded choppy. The FTSE 100 dropped 0.7% in morning trade, hitting lows not seen since June 12. Weak services data and expectations for higher interest rates weighed on UK stocks.
3i picked up 1.87 million shares over the five sessions ending June 19, according to a filing out Monday. Total purchases since the start of its programme hit 9.75 million shares, costing £216.8 million before fees and taxes. That’s about 29% of the £750 million buyback authorization. The company is cancelling the stock it buys, raising the claim of each remaining share.
3i’s buyback plan puts £750m on the table, but some analysts are skeptical it’s enough to lift the stock. James Carthew, head of investment-company research at QuotedData, said at the announcement: “A £750m share buyback sounds large, but it is less than 5% of 3i’s market cap and may not move the dial.” QuotedData
Regulators in Europe gave the green light to 3i’s planned takeover of Idro 2020 and Nordic Windfarm HoldCo. The European Commission also approved a joint deal by 3i and Rittal for Norway’s Lefdal Mine Datacentre. The assets span power and data processing operations.
Action still drives the main debate on 3i’s valuation. The discount chain made up most of 3i’s returns in recent years. As of March, 3i marked its 65.4% holding in Action at £23.74 billion. That’s nearly three quarters of the £31.82 billion investment portfolio.
Action’s like-for-like sales rose 2.4% for the 19 weeks to May 10. That’s slower than the 6.8% gain a year ago. Operating EBITDA margin dropped to 12.4% from 14.8%.
3i stands out from other listed alternatives like Intermediate Capital Group and Bridgepoint. Those groups work across private credit, infrastructure, secondaries, and other areas, most of it funded by client money. At 3i, any shift in Action’s trading view or private valuation hits group NAV harder than at peers.
But there’s still a risk. If Action keeps growing sales at this slower pace or margins stay weak, 3i’s top asset could get a lower valuation. That would shrink the discount to NAV. A bigger buyback probably wouldn’t cover a major markdown.
Shares barely moved Tuesday, so the question remains open. The discount is still wide and the buyback is going, but investors are looking to Action’s next trading update. Those numbers will matter more to the stock than how quickly management buys back shares each week.
