SEC Sets Approval on Health Net Merger

The parent of Health Net Inc., the large health maintenance organization based in Woodland Hills, said Monday that the Securities and Exchange Commission has approved its registration statement related to the merger of Health Net and QualMed Inc. of Pueblo, Colo.

Privately held HN Management Holdings Inc. filed the registration statement after it announced in August a proposed merger with QualMed in a stock deal. Under the proposed transaction, each share of Health Net would be converted into 3.34 shares in the combined company, giving former Health Net shareholders a 65% interest. The merger, which is expected to be completed in January, requires approval from stockholders and state regulators.