3i Group hikes dividend, starts new share buyback and ups Action stake

3i Group PLC started a new share buyback on Thursday and raised its interim dividend, as net asset value rose in the first half of its financial year, and 3i increased its stake in its largest investment.

London-based 3i is a private equity investor whose largest holding is Dutch discount retailer Action. During the recent six months, 3i bought an additional 2.1% stake in Action from a "third-party investor", bringing its total holding to 67.5%. The Action purchase was settled in 3i shares at 3i's NAV per share on June 30 of 3,131 pence, worth £764 million.

NAV per share was 3,154p on September 30, the end of the financial first half. This was up from 3,030p on March 31 and 2,857 a year before. Total return for the half-year was 5%, down from 13% a year before.

3i will pay a 42.25p interim dividend for the recent half, up 16% from 36.50p a year before.

The company also on Thursday announced a new £750 million share buyback, which will start immediately and follow the completion of a buyback of the same size that began in May. The new buyback will be run by Deutsche Bank AG and be completed by May 31 next year. The repurchased shares will be cancelled.

3i said Action recorded operating earnings before interest, tax, depreciation and amortisation of EUR1.96 billion on net sales of EUR14.26 billion in the 10 months that ended October 25, up 12% and 14%, respectively, on a year before. Like-for-like sales were up 3.7% in the year to the end of week 45, it said, and are expected to be up about 4% in the full year.

Action has opened 286 net new stores so far in 2026, 3i noted, and now operates in 16 countries.

"We are very pleased to have increased our stake in Action," said 3i Chief Executive Simon Borrows.

"We regard Action as an exceptional business, distinguished by its strong and consistent growth, attractive store economics and continued opportunity for significant international expansion. Its store economics reflect high sales and profit densities, which drive exceptional store paybacks and cash generation."

3i shares were up 3.5% to 2,656.00 pence early Thursday in London. The wider FTSE 100 index was up just 0.2%.

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