London, Jan 29, 2026, 10:38 GMT — Regular session
- Shares of 3i Group jump roughly 11% following a Q3 update that highlights stronger January trading at Action
- Company will increase its stake in Action to 65.3% through a share-funded deal with GIC, expected to close on Jan 30
- The company reported diluted NAV per share climbed to 3,017 pence as of Dec. 31
3i Group (III.L) shares jumped 10.6% to 3,480 pence by 1016 GMT on Thursday. The boost came after the investor reported a strong start to the year in sales at its biggest holding, discount retailer Action. (London South East)
The shift is significant since Action drives 3i’s private equity portfolio, with its stock reflecting changes in the retailer’s performance—particularly in France, where the group has flagged softer consumer demand.
3i highlighted a share-funded transaction aimed at boosting its stake in Action, signaling continued commitment to its core asset despite expanding its share base. CEO Simon Borrows noted the group had “made a good start” to the last quarter of its financial year and was “set for another strong year of compounding growth.” (3i)
Action’s like-for-like sales — which exclude the impact of new stores — climbed 4.9% in the year ending late December, down from 10.3% the previous year, 3i said. For the first four weeks of January, it posted 6.1% like-for-like growth.
3i described France as “the outlier.” Like-for-like sales dropped by mid-single digits in October and November, then bounced back to flat in December, before climbing 2.1% in the first four weeks of this year.
Action expanded by a record 384 net new stores in 2025, pushing its total to 3,302 outlets across 14 countries, according to 3i. The company reported net sales of 16.0 billion euros and operating EBITDA — earnings before interest, tax, depreciation and amortisation — of 2.367 billion euros for the 52 weeks ending Dec. 28.
Cash flows stayed in sharp focus. 3i reported it pulled in 944 million pounds from Action’s capital restructure and pro-rata share redemption in October, followed by another 246 million pounds dividend in December. After distributing those funds, Action closed 2025 with 807 million euros in cash.
In January, 3i reached a deal with GIC to acquire an additional limited partnership stake amounting to around 2.9% of Action’s equity. The payment came in the form of 31.35 million new 3i shares, pegged at a valuation of £1 billion. The company said the deal should close on Friday, with the new shares set to start trading then. These shares will be locked up for up to 12 months, it added.
As of Dec. 31, 3i placed a value of 22.382 billion pounds on its 62.3% holding in Action, applying the same 18.5-times run-rate EBITDA multiple after adjusting for liquidity. The company reported that diluted net asset value (NAV) per share — portfolio value minus debt, on a per-share basis — climbed to 3,017 pence from 2,857 pence three months prior.
3i highlighted strong performances from Royal Sanders and Audley Travel, while confirming it wrapped up the sale of MAIT during the quarter. It also noted “challenging” trading at recruitment firm Wilson.
“January kicked off on a strong note,” Bernstein’s retail analyst William Woods said, highlighting the sequential gains in Action’s performance in France. (Financial Times)
The rebound isn’t without its quirks. The GIC deal bumps up 3i’s share count, while Action’s performance in France is still in its infancy — any fresh drop in demand, increased promotions, or a lower valuation multiple could swiftly hit 3i’s reported NAV.
Traders are focused on the Jan. 30 close of the GIC deal and the listing of new shares. Then, attention shifts to March’s Action capital markets seminar, where 3i plans to reveal details on Action’s 2025 results and 2026 outlook.
