London, Jan 29, 2026, 08:30 GMT — Regular session
- Shares of 3i Group jumped roughly 14% following the release of a higher net asset value and improved trading figures at Action.
- The firm announced plans to increase its stake in Action to 65.3% through a share issue worth about £1 billion to GIC.
- Investors are zeroing in on Friday’s deal close and the Action update expected in late March.
3i Group’s shares surged roughly 14% in early London trading Thursday after the private equity firm reported a rise in portfolio value and increased its stake in discount retailer Action. (London South East)
This matters since 3i’s valuation often shifts in step with Action’s momentum. Even a slight tweak in the retailer’s growth rate — or in how 3i values that growth — can directly impact 3i’s net asset value and its share price.
The update arrives as investors gear up for the last leg of 3i’s financial year. While the company’s figures reflect past performance, the market is focused on the next valuation boost.
3i reported its net asset value per share climbed to 3,017 pence at Dec. 31, up from 2,857 pence three months earlier, boosted by a £766 million positive foreign-exchange translation effect. Action posted €16.0 billion in net sales and €2.367 billion in operating EBITDA over the 52 weeks to Dec. 28. Like-for-like sales growth slowed to 4.9% in 2025 but picked up to 6.1% in the first four weeks of January. The firm also struck a deal to acquire an additional 2.9% stake in Action from Singapore’s GIC for around £1 billion, paying with 31.35 million new 3i shares. This deal, expected to close on Jan. 30, will raise 3i’s equity ownership in Action to 65.3%. CEO Simon Borrows said Action “continued its impressive growth trajectory” and 3i had made “a good start to the final quarter.” (3i)
Net asset value (NAV) represents a company’s investments minus its liabilities, calculated on a per-share basis. Like-for-like sales exclude new store openings, offering a clearer picture of core demand.
The deal structure factors heavily into the trading. Using new shares preserves cash but raises the total share count, risking dilution for existing holders—unless the added stake generates value exceeding the cost of issuing that equity.
Still, the update reveals a few weak points. Like-for-like growth slowed significantly last year compared to 2024, with 3i highlighting France as a drag in the autumn months before a rebound. If that recovery loses steam, the share price could retreat from Thursday’s gains.
Then there’s the issue of valuation. 3i’s price tag on Action hinges on an earnings multiple and projections for future store expansion — both of which could face swift headwinds if the broader retail environment sours.
Upcoming catalysts are imminent. Traders are eyeing Friday’s anticipated wrap-up of the GIC deal, followed by the Action Capital Markets Seminar webcast on March 26, which should shed more light on 2026 guidance. (3i)
