3i set to re-enter FTSE 100

PRIVATE EQUITY firm 3i Group is likely to rejoin the blue-chip FTSE 100 index of leading UK companies from the mid-cap index this month, FTSE Group said.

According to the rules, any company rising to the 90th place or above in terms of market capitalisation is automatically added to the FTSE 100 index, relegating the company at the bottom of the list to the mid-cap FTSE 250 index.

As per the ranking after market close on May 30, 3i Group, whose investments include the Rotherham-based engineering group AESSEAL, was the most likely candidate to join the FTSE 100 index.

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According to FTSE Group, which is part of London Stock Exchange Group, said 3i was a part of the FTSE 100 index twice before - from 1994 to March 2009 and again from June 2009 and September 2011.

The FTSE 100 constituents that are eligible for potential demotion into the FTSE 250 are bookmaker William Hill, a major employer in Yorkshire with an operations centre in Leeds, and industrial investment firm Melrose Industries.

“For the purposes of balancing the potential demotion of two constituents in the FTSE 100, the FTSE 250 constituent nearest to the 90th threshold will need to potentially move into the FTSE 100 index. As at Friday 30 May, this constituent would be Intu Properties.”

Shares in the shopping centre owner have risen 11.3 per cent this year, outperforming a broadly flat market.

Final decisions on reshuffling the FTSE 100 will depend on Tuesday’s closing prices and will be announced tomorrow.

The changes will come into effect at the close on June 20.