China's Baosteel Resources Australia Pty Ltd (Baosteel) and Australia's Aurizon Holdings Ltd launched a A$1.14 billion ($1.06 billion) takeover bid for Australian iron ore developer Aquila Resources Ltd , Aurizon said on Monday.

Baosteel and rail company Aurizon said they will offer A$3.40 in cash per share, a 39 percent premium to Aquila's last closing price.

Aurizon said it would acquire 15 percent of Aquila if the deal was successful. Baosteel already owns almost 20 percent of Aquila, which is leading the long-delayed $7 billion West Pilbara Iron Ore project in Australia.

($1 = 1.0795 Australian Dollars)

(Reporting by Lincoln Feast; Editing by Marguerita Choy)