(Adds Prudential's comments, details of deal)
SANTIAGO, Oct 28 (Reuters) - U.S. insurer Prudential Financial Inc said on Tuesday that it has agreed to purchase up to 40.29 percent of Chilean pension fund manager AFP Habitat from Chile's Inversiones La Construccion.
Prudential and ILC signed a memorandum of understanding that will make them equal partners in AFP Habitat if the deal, which is expected to close in the first half of 2015, is successful.
"Upon completion, this strategic partnership with ILC will help Prudential expand its presence in Latin America and participate in the growing Chilean pension market," said Bill Yates, head of Prudential's Latin American division.
Prudential said it will buy an indirect interest in AFP Habitat from ILC's subsidiaries for 925 Chilean pesos per share, for a total purchase price of between $530 million and $620 million.
Habitat's shares closed at 977.99 pesos ($1.69) a piece on the Santiago Stock Exchange on Tuesday.
"Depending on the results of a pre-closing partial tender offer by ILC to acquire additional shares of AFP Habitat from public shareholders," Prudential said, it will acquire between 34 percent and 40 percent of AFP Habitat from ILC.
1 US dollar = 578.6500 Chilean peso Reporting by Anthony Esposito; Editing by Steve Orlofsky