(Bloomberg) -- Turkish energy firm Palmet Enerji AS is preparing for an initial public offering next year after it acquires two gas grids from Zorlu Holding.

The acquisition, which is pending regulatory approvals, will double Palmet’s gas customers to 2 million homes and sites in Turkey, Chairman Doganay Samuray said in an interview. A special purpose vehicle will be created to hold all of Palmet’s gas assets and a portion of the SPV may be listed, Samuray said. 

The two energy companies announced in seperate filings Wednesday that Palmet will acquire Zorlu Enerji Dagitim AS, a unit of Zorlu Holding, for an undisclosed sum. The deal gives Palmet control over gas grids in the Trakya and Gaziantep regions, as well as a gas procurement and trading company from Zorlu Enerji Elektrik Uretim AS. The deal may close by March, Samuray said.

If the deal goes through, Palmet will be responsible for nearly 20% of Turkey’s total gas consumption, with sales rising to 10 billion cubic meters a year from 6 billion, Samuray said.

Palmet is in talks with a local bank about taking out a lira loan to finance the acquisition and refinance debts tied to the assets, Samuray said. Palmet also plans to invest in the assets after the takeover is completed, he said. 

The takeover will help Palmet increase revenues to $2 billion this year from $1.5 billion in 2023, Samuray said. 

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