Citigroup has increased its stake in a Chilean financial firm that controls the country's No. 2 bank, Banco de Chile, in an operation worth $513 million, the firm's parent company said on Friday.

Chilean holding company Quinenco , which is the main shareholder in LQ Inversiones, announced the deal in a statement to the bourse regulator.

Citigroup has increased its stake in LQ Inversiones by 8.52 percent to around 41.5 percent. LQ Inversiones is the controlling shareholder of Banco de Chile .

Shares in Banco de Chile rose 2.76 percent on Friday to 48.80 pesos.

Quinenco, which is controlled by the Luksic family group, is invested in financial, food and beverage, manufacturing and telecommunications companies, including brewer CCU .

(Reporting by Antonio de la Jara; Editing by Gerald E. McCormick)