Sutton and East Surrey Water is up for sale after its owner said it was “exploring options” for the utility, according to the Sunday Times.

The newspaper reported that Icon Infrastructure, an investment fund to come out of Deutsche Bank, has appointed the investment bank Citi to find a buyer for the water utility.

The company is expected to fetch between £250 million and £300 million. It had a pre-tax profit of £4.5 million for the year ended 31 March 2012, on revenue of £57.1 million.

According to the report, City sources said the auction was likely to attract American investment banks and pension scheme providers.

Japanese trading houses and Chinese state-owned investment groups are also expected to put in bids.

Sutton and East Surrey Water was bought by Deutsche Bank for £189 million in 2005 from private equity firm Terra Firma. It employs 250 people and supplies drinking water to around 278,000 households.