Information:

Philips to sell its Domestic Appliances business to global investment firm Hillhouse Capital

• Transaction values Domestic Appliances at an enterprise value of approximately EUR 3.7 billion
• Philips expects to receive cash proceeds after tax and transaction-related costs of approximately EUR 3 billion in the third quarter
• Additional 15-year brand license agreement with annual payments that represent an estimated net present value of approximately EUR 0.7 billion, resulting in a total deal value of approximately EUR 4.4 billion
• Transaction is expected to be completed in the third quarter of 2021 subject to customary closing conditions
• Domestic Appliances will be presented as a discontinued operation in Philips' financial statements as of the first quarter of 2021

Question

What are the direct and indirect financial risks (threats) that Hillhouse Capital faces when buying the Domestic Appliance business from Royal Philips?

*Note: Please explain those risks*