3i Group PLC said on Thursday it has agreed to buy an additional 2.2% stake in European discount retailer Action from Singapore's sovereign-wealth fund GIC.
The British private-equity firm will pay for the stake by issuing nearly 20 million new shares to GIC, which will be subject to a six-month lock-up period, according to the company.
The deal increases 3i's holding in its largest asset as the retailer continues to post strong growth despite a subdued macroeconomic environment.
Action's year-to-date sales rose 18% to 10.9 billion euros as of late September, the company said.
Operating earnings for the last twelve months are expected to be approximately 2.3 billion euros, a 21% increase from the prior year.
Like-for-like sales growth was 6.5% for the year-to-date period, a figure the company said was moderated by weaker consumer spending and strikes in France.
Action has added 207 net new stores so far in 2025 and recently opened its first location in Romania.
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3i Group reported a strong first half driven by its discount retail chain Action, and said it increased its stake in the business twice despite signs of weakening consumer confidence.