Markie, Wow!You are quite correct, the documentation, through...

Markie,
Wow!
You are quite correct, the documentation, through all the Announcements, implies that FKP will take up its rights, but it is not documented that they will do so.
In the Document 'Rights Issue and Agreed Financial Restructuring Plan' there is a section that indicates that Bell-Potter will fully underwrite, and that SHKIS has agreed to sub underwrite.
The next 2 linked paragraphs would lead most people to believe FKP will take up the offer.
The first Paragraph states that Bell-Potter has received undertakings from other shareholders to take up the offer up to about $8.63 M (Over one third of the offer !) We all know that FKP holds about one third. If the major shareholder was not going to participate, this would leave a huge hole, and be very significant. How else would they make up the $8.63M ? (Given that at this stage they had not yet gone to the public and would have been in discussion only with selected institutional holders).
The very next paragraph indicates that the validity of the Offer is also Subject to Approval, by the Treasurer, under the Foreign Acquisitions and Takeover Act, that amongst other things, FKP needs to be Approved to take up its offer.(I assume this is implying that if others did not take up their entitlements, FKP could strengthen their control).
If FKP, the major shareholder, is not going to participate, then this is highly likely to put control of the company ,and its assets, with SHKIS. (Even though SHKIS has indicated it will on-sell its controlling shares to some yet to be identified companies !)
It is all very well to say who IS likely to participate, but it is irresponsible not to be perfectly clear if the major shareholder is NOT going to participate. The implications are very significant.
In my mind it is even bordering on the deceptive to structure the Announcements in a manner that leaves open the impression that FKP is expected to participate and even intends to participate, if that is not the case. It was not until that I read to the end of the prospectus, under the Risks Section, that it is mentioned that failure of FKP to participate represents a potential future risk for the company.
Whether or not it is intentionally unclear is not the issue. I read documentation carefully, and I came away thinking FKP were going to participate. If others interpreted the info as I did then that could influence their own confidence, or play a part in their decision to participate.