By Atul Prakash
LONDON (Reuters) - British private equity firm 3i Group (L:III) is likely to rejoin the blue-chip FTSE 100 index L:FTSE of leading UK companies from the mid-cap index this month, FTSE Group said on Monday.
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 was the most likely candidate to join the FTSE 100 index.
According to FTSE Group, which is part of London Stock Exchange Group (L:LSE), said 3i was a part of the FTSE 100 index twice before - from Sept. 19, 1994 to March 11, 2009 and again from June 10, 2009 and Sept. 7, 2011.
The FTSE 100 constituents that are eligible for potential demotion into the FTSE 250 are bookmaker William Hill (L:WMH) 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 British mall owner have risen 11.3 percent 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 on Wednesday. The changes will come into effect at the close on June 20.
Analysts said a promotion to the main list could fuel further demand for 3i Group shares from funds that track the FTSE 100 or use it as their benchmark.
Shares of the company have risen in every quarter from 2013 and is up more 11.6 percent so far this year, outperforming the FTSE mid-cap index L:FTMC, which is up just 0.9 percent.
The owner of women's fashion retailer Hobbs and Tommee Tippee baby bottle maker Mayborn has reported a 12 percent rise in its net asset value per share to 348 pence for the year ended March, beating forecasts for 332-344 pence.
The company said last month it planned to invest 500 million pounds ($838.67 million) in mid-sized businesses over the coming years.
On the other hand, shares in William Hill have fallen more than 11 percent this year. British bookmakers are facing a difficult time following tightening controls on the spread of betting shops and the high stakes gambling machines that account for a growing part of their business.
Shares in Melrose, which follows a private equity model of buy-improve-sell, have fallen 6.8 percent in 2014.
($1 = 0.5962 British Pounds)
(Reporting by Atul Prakash, editing by Louise Heavens)